Stocks Slide as Weak Job Growth Weighs on Market

New York City, U.S. — Stocks faced significant pressure on Friday at the start of August trading as investors reacted to troubling signals about the economy.

The Dow Jones Industrial Average fell 510 points, or 1.2%, while the S&P 500 and Nasdaq lost 1.2% and 1.5%, respectively. The declines came after a report revealed that nonfarm payrolls increased by only 73,000 last month, falling well short of the 100,000 increase that economists had expected.

Revisions to previous months’ job growth were also stark, with June‘s numbers adjusted down to just 14,000 from 147,000. May‘s count was revised down to 19,000 from 125,000, suggesting a longer trend of weakening in the labor market.

Bank stocks plummeted due to concerns that a slowing economy could hinder loan growth. Shares of major banks saw declines: one bank fell nearly 4%, while two others dropped by more than 3% each. In response to the jobs report, traders have raised the odds of the Federal Reserve cutting interest rates to 66%, indicating a shift in market expectations.

Jeffrey Schulze, head of economic strategy at ClearBridge Investments, commented, “With job creation at stall speed and the tariff headwind lying ahead, there’s a strong possibility of a negative payroll print in the coming months which may conjure up fears of a recession.”

The economic sentiment was further dampened by President Donald Trump‘s announcement of higher tariffs on goods from China, which increased from 10% to 41%, affecting various trading partners. Tariffs on Canadian imports also rose from 25% to 35%, instilling more uncertainty among investors.

Despite the negativity, some tech stocks offered glimmers of hope. Shares of one tech giant rose 2% following positive news. However, overall the market struggled, with both the S&P 500 and Nasdaq recording their third consecutive day of losses.

In a recent social media post, Trump criticized Fed Chair Jerome Powell, advocating for interest rate cuts amid the weak jobs report. “Too Little, Too Late. DROP THE RATE!” Trump said.

As the economic landscape continues to shift, the market awaits further indicators to gauge the direction of recovery and growth.