12:26 PM EDT, 08/02/2024 (MT Newswires) -- US equity indexes plunged midday Friday as a substantial miss in July's nonfarm payrolls sent government bond yields into a steep decline, while disappointing quarterly results from Intel ( INTC ) hit technology.

The Nasdaq plummeted 2.5% to 16,758.9, with the S&P 500 sinking 2% to 5,333.2 and the Dow Jones Industrial Average 1.9% lower at 39,572.1. All sectors were declining intraday, with consumer discretionary and energy sliding the most.

In economic news, nonfarm payrolls expanded 114,000 last month, the Bureau of Labor Statistics said. The consensus was for a 175,000 gain in a survey compiled by Bloomberg. Job gains were revised downward by 27,000 for June and 2,000 for May. The unemployment rate increased to 4.3%, as anticipated, from 4.1% in June.

Average hourly earnings grew 0.2% sequentially and 3.6% year over year, below Wall Street's estimates of 0.3% and 3.7%, respectively.

Treasury yields plunged, with the 10-year nosediving 14.4 basis points to 3.84% and the two-year rate cratering 23.4 basis points to 3.93%, as sharply weakening economic data hit the risk sentiment. VIX was up 36% to 25.3.

In company news, Intel ( INTC ) shares slumped 26% intraday, the worst performer on the S&P 500, the Nasdaq, and the Dow, after the chipmaker reported late Thursday a drop in Q2 earnings and sales. The company announced plans to suspend dividends starting Q4, while implementing a $10 billion cost-cutting program that will include a headcount reduction of more than 15%.

Amazon.com ( AMZN ) was also among the laggards Friday on the three indexes, down 10% intraday, after quarterly sales reported the day before trailed analysts' estimates and multiple brokerages cut their price targets.

The technology sector slumped 1.5% intraday,

West Texas Intermediate crude oil dropped 3.8% to $73.38 a barrel.