Stock Market Slumps Following Negative Economic Reports

Stocks on Wall Street went down more than 2 percent and Treasury yields fell on Wednesday, following the release of economic statistics that "sent a bleak picture of the employment and manufacturing sectors," as reported by the New York Times. According to ADP Employer Services, the payroll processing firm, private employers added only 38,000 jobs in May, a figure much lower than what had been expected and the smallest since September 2010.

Economists had anticipated the addition of over 175,000 private sector jobs, and some speculated that the unexpectedly low number was influenced by recent storms that led automobile manufacturers--faced with a disrupted supply chain--to temporarily lay off workers. The Dow Jones industrial average had gone down 279.65, points, or 2.22%; Standard & Poor's 500-stock index 30.65 points, or 2.28%; and the Nasdaq composite index had fallen 66.11 points, or 2.33%, at Wednesday's close.

Nonfarm payroll employment figures for May will be released by the government Friday.

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