Stock dives as work numbers are disappointed and tariffs “panic” are set
As the market opened on Friday, tariff charges and a disappointing July employment report weighed heavily on investors.
Dow The Jones Industrial Average fell 520 points (1.1%) as of 9:40am. Nasdaq The index fell to 332 points (1.6%), while the S&P fell to 77 points (1.2%).
Last month, non-farm salaries increased by 73,000. Additionally, the Labor Bureau revised the previous month below, saying that employment growth in June, which had previously been reported at 147,000, was actually only 14,000. The May count has also been changed from 125,000 to 19,000.
That shows that the job market has been weak for quite some time. Many Americans are suspected despite the number of bullish jobs. The only possible bright side to that is that it could give the Federal Reserve a reason to cut interest rates faster than expected.
“The situation in the data signal labor market today continues to cool, and while a softer situation will not guarantee a warning signal to investors, we need to be aware that the economic situation is changing for market participants, including the Fed.” Allianz Investment management.
However, tariffs were the main weight of the stock. Overnight, Trump renewed his taxes. This is currently in the range of 10% to 41%. Even products introduced to avoid customs duties Currently facing 40% tariffs. And Canada is currently entitled to a 25% to 35% tax.
Macquarie strategists Thierry Withman and Gareth Berry wrote in a note to investors that they wrote the deal “in a bit of a panic” early in the month.
In all this, Trump appeared to resume his public criticism of Fed Chairman Jerome Powell and encourage the Fed committee to launch a coup. “The stubborn idiot Jerome ‘too late’ Powell now has to cut interest rates significantly,” Trump wrote. “If he continues to refuse, the board should assume control and do what everyone has to do!”
The weak market comes after three consecutive days of losses on the S&P 500. Since Trump took office, the S&P 500 has risen 5.7%. The Dow is up 1.5%, while the Nasdaq is only 8% higher than where it stood on January 19th.