Bull Trap! Jobs Report Beats, Nasdaq Collapses

Friday morning before the markets opened, the U.S. Labor Department released the February jobs report.

It appeared to be loaded with good news. The economy added 379,000 new jobs compared to the 200,000 expected. The unemployment rate fell to 6.2%, the lowest point since last February.

The futures rallied on the news. All three major indexes opened in positive territory, up about 1%.

But after the open, the market has been unable to hold any of its gains. All major indexes are now trading in negative territory.

At writing, the Nasdaq Composite is trading down more than 2.5% on the day and 3.5% off its opening highs. After yesterday’s close, the Nasdaq entered correction territory, which is a decline of more than 10% from recent highs.

The Dow Jones Industrial Average and S&P 500 are both near their session lows, down 0.3% and 0.75% respectively.

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