Stock markets in Toronto and New York fell Thursday as U.S. employment data showed employers cut 467,000 jobs in June, driving unemployment to a 26-year high of 9.5%.

The S&P/TSX composite index closed down 129 points, or 1.2% at 10,245.91

Oil prices fell after the weak jobs report stoked fears about when an economic recovery may take hold.

August crude futures dropped $2.58, or 3.7%, to settle at US$66.73 a barrel on the New York Mercantile Exchange.

The TSX energy sector fell 4.1%. Suncor Energy Inc. lost $2.21, or 6.3%, to $33.16, while Petro-Canada fell $2.94, or 6.5%, to $41.98.

The TSX gold sector rose 1% even though gold futures fell. August gold ended down $10.30, or 1.1%, at $931 an ounce on the Comex division of the New York Mercantile Exchange.

In Toronto, Goldcorp Inc. gained 9¢ to $41.37, while Barrick Gold Corp. added 50¢ to $39.65.

The financial sector lost 1.2%. On Tuesday, debt rating agency DBRS said it was downgrading the preferred shares of the big six Canadian banks.

The junior S&P/TSX Venture composite index edged up 0.61 of a point, or 0.06%, to close at 1,092.58.

The Canadian dollar gained 0.06 of a cent to US86.04¢.

In New York, U.S stocks tumbled after the June jobs report signalled that hopes for a quick economic recovery may prove premature.

Due to a glitch in the New York Stock Exchange’s system, trading was extended 15 minutes beyond the traditional closing time of 16:00 ET to ensure all trading orders were executed.

The Dow Jones industrial average dropped 223.32 points, or 2.63%, to close at 8,280.74. The S&P 500 fell 26.87 points, or 2.91%, to 896.46. The Nasdaq composite index lost 49.20 points, or 2.67%, to 1,796.52.

U.S. markets will be closed Friday for Independence Day.

IE