U.S. Stocks Plunge on Weak Jobs Data and Tariff Fears

U.S. equities suffered heavy losses Friday as disappointing July employment figures and renewed trade tensions rattled investors. The Dow Jones Industrial Average plummeted 640 points (1.4%), with the S&P 500 and Nasdaq Composite dropping 1.6% and 2.1% respectively. Market sentiment soured rapidly as the labor report showed just 73,000 jobs added—far below the 100,000 consensus—while prior months saw downward revisions.

The jobs bloodbath extended across sectors, with July layoffs surging 140% year-over-year to 62,075. Year-to-date job cuts reached 806,383, the highest January-July total since 2020. Government agencies led the purge (292,294 cuts), followed by tech (89,251) and retail (80,487). Financials bore the brunt of selling, with JPMorgan Chase sinking 4% on fears of slowing credit growth. Industrial bellwethers GE Aerospace and Caterpillar fell 3% amid demand concerns.