U.S. Stock Markets Fall on September Jobs Decline News
Data showing that the U.S. economy registered its first monthly jobs decline in about seven years during September sent U.S. stocks falling, despite wage growth showing an unexpected jump.
The job losses were contributed to by the hurricanes in the Gulf and Florida, affecting thousands of Americans and derailing many jobs due to the devastation left in their wake.
Nonfarm payroll decreased by 33,000 in September. This goes against economists’ expectations. A MarketWatch poll of economists predicted that 75,000 jobs would be created in September. While the unemployment fell slightly and wage growth marked an increase, the job losses that did occur in the month are still expected to hurt the economy, alongside other expenses incurred from disaster recovery.
The S&P 500 fell by eight points, or 0.3%, to 2,544, with nine of the 11 main indices trading lower. The Dow Jones Industrial Average dropped 30 points, or 0.1%, to 22,745. The Nasdaq Composite Index was last trading five points, or 0.1%, lower to 6,579.
Boom-Time Growth Before September Jobs Decline
The stock market in general has been experiencing boom-time growth, registering multiple all-time highs and breaking records consistently throughout the year. While some of this success can be attributed to President Donald Trump and his pro-business White House, others are concerned that a bubble is brewing and that economic fallout could result as assets continue to grow at too quick a pace.
Hurricane Destruction Triggers Jobs Decline, Money Woes
In addition to the stock market, the government budget will also fall victim to the hurricane’s wrath. The recovery process following the storms that ravaged much of the Southeast of the U.S. and Puerto Rico is expected to be very costly. President Donald Trump mentioned the federal budget when talking about Puerto Rico’s multi-billion-dollar rebuilding effort, saying that it had thrown the federal budget “out of whack.”
Disaster relief is also taking place in Florida and Texas, both of which were hit by heavy storms this year. But the situation is most dire in Puerto Rico. The island is currently largely without power, with food and water also being hard to come by. Relief efforts from the U.S. mainland have been slow and by some measures ineffective. The situation has become so grim that Oxfam, which normally does not lend aid to developed nations, will be heading to Puerto Rico to provide help.
“Stock market threatens to end streak of records after jobs report,” MarketWatch, October 6, 2017.