Business

Stocks and dollar fall on weak US jobs figures

NYSE traders Image copyright Reuters

(Close): US stocks and the dollar fell on Friday after the latest US jobs figures were much weaker than expected.

Analysts said it was unlikely the US Federal Reserve would raise interest rates this month after the US economy added just 38,000 jobs in May - the fewest since September 2010.

On Wall Street, the Dow Jones fell 31.50 points to 17807.06.

The S&P 500 index slid 6.13 points to 2099.13, while the Nasdaq dropped 28.85 to 4942.52.

Shares in banks - which tend to benefit from rising interest rates - experienced some of the biggest falls. Shares of JP Morgan Chase fell 1.7% and Goldman Sachs slipped 2.3%. Bank of America stock tumbled 3.5%.

The US unemployment rate fell to 4.7% from 5%, the lowest since November 2007, but this was partly due to a large number of people stopping the hunt for work.

"It certainly takes off the table any kind of chance of a rate movement at all in the month of June," said Terry DuFrene, global investment specialist at JP Morgan.

"Now that's got to be pushed out until maybe the early fall before there's any sort of rate movement at all."

The dollar fell against a basket of currencies in reaction to the data. Against the yen, it dropped more than 2%.

The dip in the value of the dollar sent shares of mining and gold companies soaring.

Shares of Iamgold rose 15.7% and Yamana Gold climbed 14%. Both companies are Canadian-based, but listed in New York.