US stocks tumbled Friday after employers shed jobs for the first time since 2003, stoking fears of a US recession and slashing 250 points off the Dow Jones Industrial Average, according to dpa. General Motors Corp and Alcoa Inc dropped the most after analysts cut profit forecasts. All but one of the 30 blue-chip industrials fell, erasing the week's gains. The number of US jobs declined by 4,000 in August, the Labour Department said, shocking investors already spooked by weeks of turmoil over credit-market losses tied to the US mortgage crisis. Economists had expected a solid jobs gain. The Dow industrials lost 249.97 points, or 1.9 per cent, to 13,113.38. The broader Standard & Poor's 500 Index tumbled 25, or 1.7 per cent, to 1,453.55. The technology-heavy Nasdaq Composite Index fell 48.62, or 1.9 per cent, to 2,565.7. Friday's job data came on top of rising US borrowing costs and a sluggish economy, trends that are boosting pressure on the Federal Reserve to lower US interest rates at its September 18 meeting. Stocks in Europe and Canada also lost ground Friday, and the US dollar slid. The US currency bought 72.63 euro cents, down from 73.06 on Thursday. The dollar fell to 113.43 Japanese yen from 115.39. Gold futures for December delivery rose 5.10 dollars to 709.70 dollars per fine ounce in New York. Gold was up 4.1 per cent on the week, the biggest rise since November.
