U.S. Stocks Plunge on Weak Jobs Data Despite Tech Earnings Beats

U.S. equity markets faced sharp declines as disappointing labor market data overshadowed strong earnings from tech giants. The Dow Jones Industrial Average plummeted 620 points (1.42%), while the S&P 500 and Nasdaq Composite dropped 1.75% and 2.33% respectively. July's jobs report showed only 73,000 new positions versus the anticipated 104,000, rattling investor confidence.

Tech stocks bore the brunt of the sell-off, with Apple shares falling 2.5% despite reporting its strongest revenue growth since 2021. The iPhone maker revealed ambitious AI investment plans, signaling continued consumer spending resilience. Amazon similarly beat earnings estimates but offered conservative guidance, triggering a market backlash against its AI-related expenditures.

The jobs slump has dramatically increased expectations for Federal Reserve rate cuts, creating paradoxical market dynamics. While lower rates typically boost risk assets, the economic weakness prompting such measures has unnerved equity investors. This tension between monetary policy expectations and fundamental concerns may create volatility opportunities in crypto markets as capital seeks alternative stores of value.