Job Market Concerns Weigh on Stocks as Earnings Season Continues

Equities retreated from record highs as weaker-than-expected jobs data rattled investor confidence. The S&P 500 dropped 2.4% weekly, with tech-heavy Nasdaq and blue-chip Dow following suit. Market focus now shifts to corporate earnings amid light economic data.

Friday's jobs report revealed troubling cracks in the labor market's foundation. July's payroll additions missed estimates while unemployment ticked upward. More concerning were substantial downward revisions to May and June figures - now showing just 33,000 combined jobs versus originally reported 291,000.

The Federal Reserve's hawkish stance faces new scrutiny as economic indicators soften. While policymakers recently signaled delayed rate cuts, markets may force a reassessment if labor weakness persists. Earnings reports from 122 S&P constituents this week could provide crucial signals about corporate America's resilience.