S&P 500 Slumps as Labor Market Data Sparks Rate Cut Speculation
The S&P 500 tumbled 1.6% on Friday, marking its fourth consecutive decline after a weaker-than-expected July jobs report. Labor market pressures intensified, with rising unemployment and downward revisions to prior months' data. This fuels expectations of imminent Federal Reserve rate cuts.
Eastman Chemical led the downturn, plunging 19% on disappointing earnings. Amazon shares also fell, while Monolithic Power surged following robust quarterly results. The Nasdaq bore the brunt of the selloff, dropping 2.2% as tech stocks retreated.
Market sentiment soured rapidly as the jobs data contradicted earlier economic resilience signals. Traders now anticipate more aggressive monetary easing, potentially reshaping near-term investment strategies across asset classes.
