Market Mayhem: Tariffs and Jobs Report Roil U.S. Stocks
U.S. stocks suffered significant losses as new tariffs and a weak jobs report led to a sell-off. The S&P, Nasdaq, and Dow all experienced declines, with Amazon shares taking a notable hit. Expectations for a Federal Reserve rate cut in September increased as economic indicators faltered.
U.S. stock markets tumbled on Friday, with the S&P registering its largest daily percentage drop in over three months. This sharp decline was triggered by newly imposed U.S. tariffs affecting dozens of trade partners, alongside an unexpectedly poor jobs report igniting selling pressure.
Contributing to the market turmoil, shares of Amazon.com fell sharply after the company failed to meet expectations for its Amazon Web Services division. Just before the tariffs deadline, President Trump signed an executive order imposing duties on imports from various countries such as Canada and Brazil.
Adding to economic concerns, U.S. job growth slowed more than anticipated in July, leading to revised expectations for Federal Reserve policy actions. Market predictions indicate an 80.9% likelihood of a rate cut at the Fed's September meeting, reflecting growing uncertainty in the economic outlook.
(With inputs from agencies.)
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