U.S. markets closed sharply lower Friday after a disappointing July jobs report and the implementation of President Trump’s newly adjusted tariff rates unsettled investors.
The Dow Jones Industrial Average dropped 542 points, or 1.23%, while the Nasdaq slid 2.24% and the S&P 500 fell 1.6%.
The Labor Department reported that nonfarm payrolls grew by just 73,000 in July, far below economists’ expectations of 100,000. In a further blow to confidence, officials revised prior months’ numbers downward—June’s job growth was slashed from 147,000 to 14,000, and May’s from 144,000 to 19,000.
The revisions suggest the job market has been underperforming for months, a reality many Americans suspected despite earlier positive figures. Analysts noted that the weak data could push the Federal Reserve to consider cutting interest rates sooner than anticipated.
“Today’s data signals labor market conditions continue to cool,” said Charlie Ripley, senior investment strategist at Allianz Investment Management. “While the softer conditions don’t warrant a warning signal for investors, it should put market participants, including the Fed, on notice that economic conditions are shifting.”
Tariffs also weighed heavily on sentiment. Overnight, President Trump introduced last-minute adjustments to his trade measures, with rates now ranging from 10% to 41%. Products routed through third countries to bypass tariffs will now face a 40% duty, and Canada’s levy will rise from 25% to 35%.
Macquarie strategists Thierry Wizman and Gareth Berry described the early trading mood in a note to investors as starting “with a bit of panic.”
Amid the market turmoil, President Trump renewed his criticism of Federal Reserve Chair Jerome Powell, urging the Fed Board to intervene if Powell does not cut rates.
“Jerome ‘Too Late’ Powell, a stubborn MORON, must substantially lower interest rates, NOW,” Trump wrote. “IF HE CONTINUES TO REFUSE, THE BOARD SHOULD ASSUME CONTROL, AND DO WHAT EVERYONE KNOWS HAS TO BE DONE!”
Friday’s drop followed three straight days of losses for the S&P 500. Year-to-date, the index remains up 6.6%, while the Dow has gained 2.45% and the Nasdaq is ahead 6.9%.
