U.S. stocks fell on Friday, after the odds of an imminent rate increase dwindled following the release of weak jobs data. Particularly affected were bank stocks, which shed between 2 to 4 percent.
The U.S. Department of Labor said nonfarm payrolls grew by a mere 38,000 in May, the smallest gain in more than 5 years, after missing growth forecasts of 164,000.
The odds of a rate hike happening this month is now down to a measly 2 percent, significantly lower than the 20 percent probability just before the payrolls data was released.
The S&P 500 financial index (SPSY) plummeted 1.8 percent, on its way for the index’ biggest single-day plunge in nearly two months.
The dollar index (DXY) slipped 1.4 percent, falling to a one- month low of 94.19, against a bunch of rival currencies.
As of 9:37 a.m. ET, the Dow Jones industrial average (DJI) have fallen 85.12 points, or 0.48 percent, at 17,753.44.
The S&P 500 (SPX) also tumbled, shedding 9.35 points, or 0.44 percent, at 2,095.91, while the Nasdaq Composite (IXIC) gave up 24.62 points, or 0.5 percent, at 4,946.75.
Citigroup (N:C), Goldman Sachs (N:GS), JPMorgan (N:JPM), Bank of America (BAC), and Wells Fargo (N:WFC) shed around 2-4 percent.
JPMorgan was the biggest loser on the S&P 500, while Goldman Sachs shed the most on the Dow.