U.S. Stocks give up yearly gains, plunge on NFP report; Dow down 1.34%

Investing.com - U.S. stocks plunged at the open Friday, giving up yearly gains, as the nonfarm payroll numbers fell far short of expectations and slowing euro zone, as well as Chinese manufacturing data pushed equities lower.

At the open of U.S. trade, the Dow Jones Industrial Average fell 1.34%, the S&P 500 index dropped 0.23%, while the Nasdaq Composite index retreated 1.56%.

U.S. non-farm payrolls rose less-than-expected last month, government data showed on Friday.

In a report, the U.S. Department of Labor said non-farm payrolls rose to a seasonally adjusted 69K, from 77K in the preceding month whose figure was revised down from 115K.

Analysts had expected U.S. non-farm payrolls to rise 150K last month. 

China’s manufacturing Purchasing Managers index fell to 50.4 in May from 53.3 in April increasing fears of a global slowdown. 

Another report indicated that unemployment in the euro zone reached 11% in April and March, the highest since the data started in 1995, 

The European Central Bank and Italy pushed Germany to relent its opposition to direct euro zone aid to struggling banks in an effort to end the crisis.

Meanwhile, yields on German two, five and 30 year bonds plunged to record lows today, as well as on 10 year treasuries and British gilts.

Alcoa, Catepillar, and Bank of America all gave back at least 1.4% due to the negative jobs data.

Facebook fell another 3.2% after rallying for the first time on Thursday.

Casino companies dropped on Macau gambling revenue falling with MGM resorts dropping 3.2% and the Las Vegas Sands giving up 3.1%

During European trade, the EURO STOXX 50 gave back 1.88%, France’s CAC 40 plunged 2.22%, while Germany’s DAX 30 was knocked down 3.05%.

In other bearish news, the U.S. ISM manufacturing PMI fell more-than-expected last month, industry data showed on Friday.

In a report, the Institute for Supply Management said that the ISM manufacturing PMI fell to 53.5, from 54.8 in the preceding month.

Analysts had expected the ISM manufacturing PMI to fall to 53.9 last month.