US Stocks Plunge Amid Tariff Hikes and Weak Jobs Data, Crypto Markets Watch Closely

US equities faced a sharp selloff as President Trump's sweeping tariff hikes and disappointing labor market data rattled investor confidence. The Dow Jones Industrial Average dropped 1.2%, while the S&P 500 and Nasdaq Composite fell 1.6% and 2.2% respectively. All three major indices posted weekly declines exceeding 2%.

The July jobs report revealed only 73,000 new positions created—far below the 104,000 forecast—with downward revisions to prior months suggesting a sustained slowdown. The unemployment rate edged up to 4.2%, prompting TRUMP to threaten firing the Bureau of Labor Statistics commissioner over alleged data manipulation.

Market participants are now recalibrating Fed rate cut expectations, with Treasury yields plunging as traders price in increased dovishness. The simultaneous emergence of trade tensions and economic softness creates a volatile macroeconomic backdrop that cryptocurrency traders are monitoring for potential flight-to-alternative-asset scenarios.