Stock market today: US indexes extend plunge after surprise unemployment spike and jobs miss

• US stocks fell after a weak July jobs report raised concerns of a slowing economy.
• The US added 114,000 jobs in July, below estimates of 175,000, and the unemployment rate unexpectedly rose to 4.3%.
• Intel and Amazon's weak earnings reports also contributed to Friday's stock market decline.

US stocks dropped on Friday after a weak July jobs report raised concerns of a slowing economy and cast a shadow over the prospects of a soft landing.

The US economy added 114,000 jobs in July, well below economist estimates of 175,000. The unemployment rate also unexpectedly rose to 4.3% from 4.1%, its highest level since October 2021.

The 10-Year US Treasury yield plunged nearly 20 basis points to a 2024 low of 3.80% immediately after the jobs report was released.

"The sharp slowdown in payrolls in July and sharper rise in the unemployment rate makes a September interest rate cut inevitable and will increase speculation that the Fed will kick off its loosening cycle with a 50 bp cut or even an intra-meeting move," economist Stephen Brown at Capital Economics said.

Odds of a 50-basis point interest rate cut at the Federal Reserve's September FOMC meeting soared to 62% on Friday, a near triple from its 22% reading on Thursday, according to the CME Fed Watch Tool.

Also pushing stocks lower were weak earnings reports and guidance from Intel and Amazon. Intel stock plunged 25% after it cut its dividend and laid off 15% of its workforce, and Amazon stock dropped about 10% after it offer a tepid third-quarter sales outlook.

Here's where US indexes stood shortly after the 9:30 a.m. opening bell on Friday:

• S&P 500: 5,378.02, down 1.3%
• Dow Jones Industrial Average: 5,378.02, down 1.1% (440 points)
• Nasdaq composite: 16,854.55, down 2%

Here's what else is going on today:

• The Federal Reserve will have to cut interest rates more than expected this year, according to ING Economics.
• Homebuyers are flocking to assumable mortgages that offer lower interest rates, but they're hard to get.
• The rising trend of reshoring and nearshoring will benefit these ten stocks.

In commodities, bonds, and crypto:

• West Texas Intermediate crude oil fell 2.03% to $74.76 a barrel. Brent crude, the international benchmark, declined 1.72% to $78.15 a barrel.
• Gold was higher by 1.04% to $2,506.60 per ounce.
• The 10-year Treasury yield dropped 11 basis points to 3.87%.
• Bitcoin was lower by 0.81% to $64,771.