Stock market news- What to know as world markets react to US jobs report

news regarding the stock market.

Transcript

00:00Some stock markets all around the world have had their worst day in years as fears grow about the U.S. economy.

00:06This includes Japan, where its stock index fell by almost 13 percent.

00:11Good day's Robert Moses. He is live on Wall Street with what we're hearing this morning.

00:14Robert, good morning.

00:17Dan, good morning to you. First Asian markets, then European markets.

00:21Well, markets here in the West will likely be the next to feel the effects.

00:27And we can expect some glum faces as well as high anxiety here today on Wall Street.

00:34If overseas markets already open for business today are any indication,

00:39this could be a rough day on Wall Street, the financial capital of the world.

00:44Japan's benchmark stock index plummeted by more than 12 percent,

00:48the largest single day percentage fall since October 20th, 1987,

00:53a day dubbed Black Monday and a reflection economists say of global worries about the state of the American economy.

01:02The cheering as markets closed here Friday belied the down day.

01:08The Dow Jones industrial average dropped by more than one and a half percent.

01:12The S&P fell one point eight percent, the Nasdaq two point four percent.

01:17Why the losses? A jobs report showed that hiring by U.S.

01:21employers last month slowed much more than economists predicted.

01:26One hundred fourteen thousand new jobs were created last month.

01:29Compare that to the one hundred seventy five thousand that economists had predicted.

01:35This has been a very bad jobs report. It's showing a weakening to the economy.

01:39And then there's the issue of interest rates, though.

01:41Fed chair Jerome Powell signaled last week that inflation has ebbed enough for rate cuts to begin starting next month.

01:49There are worries that the Fed kept rates too high for too long, raising fears of a recession.

01:55A cut makes borrowing money cheaper and encourages spending, but takes a long time to fully affect the economy.

02:02The Fed is behind the curve and the market is just figuring out all this now rear view mirror.

02:13Another sign of trouble, so-called circuit breakers were triggered in Asia.

02:18What do we mean by that?

02:19Well, circuit breakers are safeguards that halt the trading of stocks once they plummet below a certain level to prevent panic sell offs.

02:29Live in the financial district this morning.

02:31Get back to you. It could be a long day.

02:33We'll see. Thank you very much, Robert.