Wall Street Tumbles as Jobs Miss, Tariffs, and Tech Woes Rattle Markets
On Friday, August 1, 2025, U.S. markets were hit hard by a cocktail of economic shocks. The S&P 500 dropped 1.6%, marking its worst session since May. The Dow Jones Industrial Average fell 1.2%, while the Nasdaq Composite sank 2.2%, dragged down by tech giants.
What Triggered the Selloff?
1. Disappointing Jobs Data
The Labor Department’s July report showed the economy added just 73,000 jobs, far below the expected figure. Even worse, revised numbers for May and June slashed previously reported gains by 258,000 jobs, raising alarm bells about a potential slowdown in the U.S. labor market.
2. Trump’s Surprise Tariff Announcement
President Donald Trump imposed a fresh wave of tariffs on imports from dozens of countries. The move reignited fears of a global trade war, with many companies warning that the uncertainty is hurting planning and squeezing profit margins.
3. Tech Stocks Take a Hit
Shares of Amazon, Apple, and Exxon Mobil fell despite solid earnings reports. Investors are increasingly worried that even strong balance sheets may not shield these companies from rising input costs and slowing demand in an unstable macro environment.
Market Reactions
The sharp decline in equities sent Treasury yields plunging as investors rushed to safety. The weak jobs data and increased trade tensions also fueled expectations that the Federal Reserve could cut interest rates in its upcoming September meeting.
Bottom Line
Investors are facing a perfect storm of slowing job growth, rising trade tensions, and uncertain corporate outlooks. Friday’s selloff has put Wall Street on high alert, with volatility expected to remain elevated in the coming weeks.