Financial Times FT.com

Wall Street stunned by jobs figures

By Michael Mackenzie in New York

Published: September 7 2007 14:07 | Last updated: September 7 2007 21:48

The recent resilience of US equities to strains in the money markets was tested on Friday by the news that the labour force had contracted for the first time in four years.

Investors had expected a gain of 110,000 new jobs for August, but a loss of 4,000 sparked sharply lower stock prices. The report left investors contemplating whether the US economy could face a recession, rather than a period of below average growth.

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