US stocks earned profits on Friday, with new trade war unrest and weak employment data sucking up investors, bringing the Dow Jones industrial average down 500 points.
summary
- Stocks fell as investors responded to the latest employment data reports.
- The Dow Jones industrial average fell by more than 500 points, with the S&P 500 and Nasdaq sliding at 1.2% and 1.5% respectively.
- The fear of a trade war allowed the bear to take advantage of it.
The Dow Jones industrial average exceeded 500 points, the S&P 500 dropped out of 1.2%, and the Nasdaq gave up 1.5%, extending the losses from Thursday, July 31, 2025.
Wall Street has shown signs of weakness as countries close to closing down the deadline for President Donald Trump to complete trade deals with the US, with wide-ranging market responses pushing the key index ahead of the release of his monthly employment report on Friday.
The Dow closed in red in the previous session, but the S&P 500 and Nasdaq skated from a near-record level as Amazon (AMZN) revenues were disappointing, driven by the unperformance of the cloud unit AWS. AMZN fell sharply as Amazon failed emotionally as Google and Microsoft did.
As a result, Apple's (AAPL) stock profits following the iPhone maker's revenue beat were unable to support the broader market.
Weak US employment data
Stocks also fell as data showed the US added just 73,000 jobs in July, falling below the expected 104,000. Lower than planned non-farm salaries and rising unemployment rates have gone from 4.1% to 4.2% of investors.
Market analysts say weak employment reports could encourage action from the Federal Reserve. The central bank's next meeting will be in September, with investors becoming increasingly optimistic, and the Fed announces interest rate cuts at the time.
Coupled with the release of other economic data, recent decisions have supported the dollar index, which contributed to a slower risky assets. Bitcoin (BTC) fell 2% as it reconsidered levels below $115K.
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Stocks fall back amid fresh tariff anxiety
Trump's trade contract deadlines have hit the market with new uncertainty as the US imposed tariffs on top trading partners, including Canada and India.
The executive order, signed on Thursday, imposed a 35% tariff on Canadian goods, but India faces a 25% rate as negotiations with the US appear to be stagnating. Meanwhile, Switzerland was hit by a 39% tariff, shocking the export-led European nation.
However, the fear of a trade war could be moderated somewhat by a seven-day delay on the effective date of the new taxation. The market sees delays as an opportunity for further negotiations.
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