Stocks Plummet on Jobs Report

By Greg Atwan,  Newser User
Posted Sep 7, 2007 4:02 PM CDT
that an interest rate cut is likely. (AP Photo/Henny Ray Abrams)   (Associated Press)
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(Newser) – The Dow lost more than 1.5% of its value, or 249.97 points, to close at 13133.38 after a devastating report showed that 4,000 jobs were lost in August, the first increase in unemployment in four years. Wall Street had anticipated job growth, and the numbers prompted concerns that the credit crunch is bleeding into the larger economy.

The S&P was off 25 to close at 1453.55, and the Nasdaq dropped 48.62 to 2565.70; crude was up 40 cents to $76.70 a barrel.The two-year treasury note yield was down to its lowest level in two years, fueled by and fueling expectations that an interest-rate cut is imminent. "We could wind up in a recession if the Fed doesn't react aggressively," one trader told the Journal.