Stock Market Plunges 500 Points on Friday: Poor Employment Figures and Fresh Tariffs Trigger Sell-off
In a week marked by economic uncertainties, major U.S. stock market indices have experienced notable declines, largely due to President Donald Trump's modified tariff rates.
The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite have all felt the brunt of these changes. On August 1, 2025, the Dow Jones Industrial Average lost about 770 points (-1.74%), the Nasdaq fell by 544 points (-2.6%), and the S&P 500 dropped 122 points (-1.9%) in early trading.
These declines coincided with updates in tariff rates and a weak jobs report. The tariff increases not only target transshipped goods but also a broad range of U.S.-origin products barred from preferential treatment, demonstrating an intensification of trade tensions.
Canada's levy on goods imported from the U.S. has been increased to 35% from 25%, adding to the concerns of investors. This move, along with other specific hikes in tariffs, has unsettled the market.
The S&P 500, for instance, dropped 2.4% for its worst weekly performance since May 23, and shed 1.60% in the same period. The Nasdaq Composite dipped 2.24%, while the Nasdaq lost 2.2% in the same week.
Shares of major companies like JPMorgan Chase, Bank of America, and Wells Fargo fell more than 2%, 3%, and 3% respectively. Tech giants such as Apple and GE Aerospace also saw their shares slip by 2.5% and nearly 1% respectively. Caterpillar dipped nearly 2%.
Shares of Amazon tumbled more than 8% due to light operating income guidance for the current quarter.
The job market also saw a setback, with Nonfarm payrolls expanding by 73,000 last month, significantly below the consensus estimate. June job growth was revised down to 14,000 from 147,000, and May job growth was revised down to 19,000 from 125,000.
Some analysts suggest a delayed economic impact rather than an immediate recession, with markets possibly anticipating recovery and lower tariffs by 2026. However, the iterative tariff escalations under Trump's administration have contributed significantly to stock market volatility and declines in major U.S. indices, reflecting investor anxiety over slower growth prospects, disrupted supply chains, and trade uncertainty.
- The economic uncertainties, largely caused by President Donald Trump's modified tariff rates, have led to notable declines in major U.S. stock market indices, affecting investments and trading.
- The S&P 500, Nasdaq Composite, and Dow Jones Industrial Average have all experienced significant losses, demonstrating a troubling trend for the economy.
- The tariff increases have affected not only transshipped goods but also a broad range of U.S.-origin products, intensifying trade tensions and unsettling finance markets.
- The volatility in the stock market may be due to the iterative tariff escalations under Trump's administration, causing anxiety among investors about slower growth prospects, disrupted supply chains, and trade uncertainty.
- Some analysts propose that the markets might anticipate recovery and lower tariffs by 2026, suggesting a delayed economic impact rather than an immediate recession, but stress that these tariffs have contributed significantly to stock market declines and investor worry.
