The U.S. stock market experienced its most significant decline since May, following a dismal employment report and the announcement of broad new tariffs by President Donald Trump. The S&P 500, Dow Jones Industrial Average, and Nasdaq all recorded steep losses, with the Nasdaq dropping 2.2% on Friday.
The contraction in job growth has increased investor speculation around a possible Federal Reserve interest rate cut in September, as Treasury yields fell sharply. Disappointing job numbers revealed just 73,000 jobs added in July, with significant downward revisions to May and June figures.
In response to the wavering economic outlook, markets are also jittery over President Trump’s tariff policy, affecting dozens of countries. Anticipated tariffs now set for August 7 add to the uncertainty. Retail behemoths, including Amazon and Apple, suffered declines, citing tariff-related cost increases and operational challenges.
(With inputs from agencies.)