The stock market extended its slide as investors worried that a weak job market will trip up a recovery in the economy.
Stocks posted modest losses Wednesday, a day after tumbling on fears about banks and concerns that a six-month rally of more than 50 percent has left the stock market overheated.
The Dow Jones industrial average lost another 30 points after skidding 186 points Tuesday.
A private-sector report on unemployment gave investors new reason to fret about what is widely seen as the biggest problem facing the economy. The ADP National Employment Report found that employment fell by 298,000 in August following a revised loss of 360,000 jobs in July. The losses were the smallest since September 2008 but more than analysts had expected.
The report shapes expectations for the Labor Department’s monthly reading on jobs, which is due Friday. Unemployment has hit consumer spending, which accounts for about 70 percent of U.S. economic activity.
Without more help from consumers, the economy will have trouble pulling out of the longest recession since World War II.
The Associated Press