05:20 PM EDT, 08/02/2024 (MT Newswires) -- US benchmark equity indexes slid Friday, pushing the Nasdaq Composite into correction territory, while Treasury yields tumbled as the latest jobs report stoked concerns about a recession.

The tech-heavy Nasdaq slumped 2.4% to 16,776.2, down more than 10% from its July closing high. The S&P 500 fell 1.8% to 5,346.6, while the Dow Jones Industrial Average dropped 1.5% to 39,737.3. Consumer discretionary saw the steepest decline among sectors, down 4.6%, while consumer staples led the gainers.

For the week, the Nasdaq tumbled 3.4%, while the Dow and the S&P 500 lost 2.1% each.

The US two-year yield sank 28.1 basis points to 3.88% Friday, while the 10-year rate declined 17.8 basis points to 3.8%.

In economic news, the US economy added 114,000 jobs last month, the Bureau of Labor Statistics reported. The consensus was for a 175,000 gain, according to a survey compiled by Bloomberg. The unemployment rate increased to 4.3% from June's 4.1%, which was the market view for July.

The report gives the Federal Reserve "the green light to start cutting (interest) rates in September, and the market's attention will now shift focus toward how many and how deep the coming cuts will be," BMO said in a note to clients.

Markets are betting on a nearly 72% likelihood for a more aggressive 50-basis-point rate cut next month, up from 22% on Thursday, according to the CME FedWatch tool. "The market is pricing in a path of rate cuts that the Fed will only meet if there is evidence that the economy is falling into a recession. Right now, there is no evidence to support that," Jefferies said in a report.

In company news, Intel ( INTC ) shares plunged 26%, the worst performer on all three indexes. The chipmaker late Thursday reported second-quarter financial results that fell short of Wall Street's views. The company outlined a $10 billion cost-cutting plan, including a headcount reduction of more than 15%, and said it will suspend dividend starting in the fourth quarter.

Amazon.com ( AMZN ) was among the worst performers on all three indexes Friday, down 8.8%. The e-commerce giant late Thursday logged second-quarter revenue that trailed the Street's estimates.

Apple ( AAPL ) rose 0.7% Friday. The tech giant late Thursday posted better-than-expected fiscal third-quarter results, as gains in iPad and Mac sales more than offset a decline in its iPhone product.

West Texas Intermediate crude oil declined 2.9% to $74.13 a barrel Friday.

Gold rose 0.1% to $2,482.70 per troy ounce, while silver increased 0.6% to $28.64 per ounce.