US Stocks Tumble as Weak Jobs Data and Trump’s Tariffs Rattle Markets

Wall Street closed the week on a sour note, with U.S. stocks sliding sharply on Friday, August 1, 2025, as a combination of dismal employment figures and President Donald Trump’s sweeping new tariffs crushed investor confidence. The confluence of these negative catalysts dampened risk appetite, sending major indices into a tailspin and raising fresh concerns about the U.S. economy’s health.

The Dow Jones Industrial Average plummeted 550 points, or 1.3%, settling at 43,581. The S&P 500 fared worse, shedding 100 points, or 1.6%, to close at 6,238. The tech-heavy Nasdaq Composite took the hardest hit, dropping 474 points, or 2.3%, to end at 20,647. The sell-off was triggered by a weaker-than-expected July Nonfarm Payrolls (NFP) report, which showed just 73,000 jobs added, far below the market’s forecast of 110,000. Compounding the disappointment, prior months’ data was revised downward, with June’s figure slashed to a mere 14,000 jobs.

Adding to the market’s woes, Trump announced the implementation of steep tariffs on 69 trading partners, ranging from 10% to 41%, effective within seven days. The tariffs, which had been on hold for over 90 days, target major economies like Canada (35%), Switzerland (39%), and India (25%). The move follows the expiration of a deadline for these nations to propose trade deals with Washington, signaling Trump’s aggressive push to reshape global trade dynamics. Investors fear these tariffs could disrupt supply chains and inflate costs, further clouding the economic outlook.

Despite the grim jobs report, wage growth showed slight resilience. Average hourly earnings rose 0.3% month-over-month in July, up from 0.2% previously, aligning with market expectations. On an annual basis, wages climbed 3.9%, matching forecasts. However, the unemployment rate ticked up to 4.2% from 4.1%, in line with predictions but underscoring labor market softness. As markets grapple with rising uncertainty, the combination of economic slowdown signals and escalating trade tensions has left investors on edge, setting the stage for a volatile period ahead.