Stock market today: US indexes extend plunge after surprise unemployment spike and jobs miss

• US stocks fell after a weak July jobs report raised concerns of a slowing economy.
• The US added 114,000 jobs in July, below estimates of 175,000, and the unemployment rate unexpectedly rose to 4.3%.
• Intel and Amazon's weak earnings reports also contributed to Friday's stock market decline.

US stocks dropped on Friday after a weak July jobs report raised concerns of a slowing economy and cast a shadow over the prospects of a soft landing.

The US economy added 114,000 jobs in July, well below economist estimates of 175,000. The unemployment rate also unexpectedly rose to 4.3% from 4.1%, its highest level since October 2021.

The 10-Year US Treasury yield plunged nearly 20 basis points to a 2024 low of 3.80% immediately after the jobs report was released.

"The sharp slowdown in payrolls in July and sharper rise in the unemployment rate makes a September interest rate cut inevitable and will increase speculation that the Fed will kick off its loosening cycle with a 50 bp cut or even an intra-meeting move," economist Stephen Brown at Capital Economics said.

Odds of a 50-basis point interest rate cut at the Federal Reserve's September FOMC meeting soared to 62% on Friday, a near triple from its 22% reading on Thursday, according to the CME Fed Watch Tool.

Also pushing stocks lower were weak earnings reports and guidance from Intel and Amazon. Intel stock plunged 25% after it cut its dividend and laid off 15% of its workforce, and Amazon stock dropped about 10% after it offer a tepid third-quarter sales outlook.