U.S. stocks fall sharply after jobs report

U.S. stocks fell 2 percent on Friday after a worse-than-expected jobs report showed the U.S. economy added no net jobs in August.

Reuters reports that the Dow Jones industrial average was down 253.16 points, or 2.20 percent, to 11,240.41. The Standard & Poor's 500 Index fell 30.46 points, or 2.53 percent, to 1,173.96. And the Nasdaq Composite Index was down 65.71 points, or 2.58 percent, to 2,480.33.

Friday's decline left the market lower for the sixth week out of seven.

Bloomberg reports that 10-year Treasury yields "sank 14 basis points to 1.99 percent, four points above a record low, and the 30-year rate reached the lowest since 2009."

Earlier on Friday, the U.S. labor department reported that the country added no net new jobs in August, and that the unemployment rate had remained at 9.1 percent. Job growth figures for June and July were also revised downward.

“Another disappointing report that speaks to a severe unemployment crisis that, unfortunately, is becoming even more stubbornly embedded,” Mohamed El-Erian, the CEO of Pimco, told Bloomberg. “Along with Europe’s dislocations, this fuels concerns about the global economic outlook and the growing risk of a recession.”

According to Reuters, stocks had rebounded recently on expectations that the Federal Reserve would be boosting the economy with new stimulus measures.

"By itself the Fed can't restore confidence or create jobs, so any steps it might take won't be game-changing for the economic growth prospects," said Leo Grohowski, chief investment officer at BNY Mellon Wealth Management.

President Barack Obama is scheduled to give a speech on jobs and the economy before a joint session of Congress on Thursday.