Markets plummet due to Trump's fresh tariffs and dismal job figures
The U.S. economy added 73,000 jobs in July, a figure significantly lower than the average of 130,000 jobs added each month this year. The jobs data may have thrown some cold water on the stock market rally, according to Kenwell, a U.S. investment analyst at eToro.
The U.S. Bureau of Labor Statistics revised downward the number of jobs added in May and June. In May, the U.S. added 19,000 jobs, lower than a previously estimated total of 139,000 jobs. In June, the economy added just 14,000 jobs.
The S&P 500 dropped 1.6% on Friday, while the Dow Jones Industrial Average closed down 542 points. The Nasdaq declined 2.2% on the same day. The selloff on Friday interrupted the resilient performance of the stock market for several months.
President Donald Trump signed an executive order on Thursday that imposes new tariffs on nearly 70 countries, ranging from 10% to 41%. The tariffs are set to go into effect on Aug. 7. The new tariffs aim to boost U.S. job growth by encouraging manufacturing to return to American soil, leading to increased investment and reshoring of jobs.
In a surprising move, President Trump fired Bureau of Labor Statistics Commissioner Erika McEntarferon on Friday. McEntarfer was a Biden appointee and was confirmed by a bipartisan vote in the Senate in 2024. Trump accused McEntarfer of having "faked" statistics in a social media post.
[1] Source: White House press release, date unknown.
- The lower-than-expected job growth in July could potentially affect the stock market rally, indicating a possible intersection of business and politics.
- The U.S. job market appears to be slowing down, as the Bureau of Labor Statistics revised downward the number of jobs added in May and June, providing a snapshot within the broader economic landscape.
- Policy-and-legislation and investing are intertwined as President Trump signed an executive order to impose new tariffs, targeting job creation and potentially boosting the economy, with a specific focus on manufacturing and investment.
- General news outlets reported a significant drop in the stock market last Friday, with the S&P 500, Dow Jones Industrial Average, and Nasdaq all experiencing a decline, possibly influenced by the weaker-than-anticipated job report and other economic concerns.
- The recent firing of Bureau of Labor Statistics Commissioner Erika McEntarferon has stirred controversy, especially considering she was a Biden appointee and her dismissal occurred amidst ongoing policy-and-legislation discussions, adding an unexpected twist to the current political climate.
