Dow Plummets 500 Points as Weak Jobs Data Collides with Trade War Fears
Wall Street's fear gauge spikes as the Dow takes a nosedive—proof that even 'blue chips' bleed when macro winds shift.
Jobs report flops, tariffs loom: A classic one-two punch for markets pretending decoupling from China was cost-free.
Traders scramble as the old economy shows cracks—meanwhile, Bitcoin's volatility looks almost quaint by comparison.
Another day, another 500-point reminder that traditional finance still runs on hopium and spreadsheet dreams.
Weak U.S. jobs data
Stocks were also down as the data showed the U.S. added just 73,000 jobs in July, below the expected 104,000. The lower-than-anticipated nonfarm payroll growth and a rise in the unemployment rate from 4.1% to 4.2% left investors concerned.
Market analysts say the weak jobs report could prompt action from the Federal Reserve. The central bank’s next meeting is in September, and investors are increasingly optimistic the Fed will announce a rate cut at that time.
Recent decisions, coupled with other economic data releases have buoyed the dollar index and contributed to the slowdown in risk assets. Bitcoin (BTC) was down 2% as it revisited levels below $115k.
Stocks retreat amid fresh tariffs jitters
Trump’s deadline for trade deals saw fresh uncertainty hit the market as the U.S. imposed tariffs on its top trading partners, including Canada and India.
An executive order signed Thursday imposed a 35% tariff on Canadian goods, while India faces a 25% rate as negotiations with the U.S. appear to have stalled. Meanwhile, Switzerland was hit with a 39% tariff, surprising the export-driven European nation.
However, trade war fears may be somewhat tempered by a seven-day delay in the effective date of the new levies. Markets view the delay as an opportunity for further negotiations.
