The Dow Jones Industrial Average fell 542.40 points, or 1.23%, to 43,588.58, the S&P 500 lost 101.38 points, or 1.60%, to 6,238.01 and the Nasdaq Composite lost 472.32 points, or 2.24%, to 20,650.13
- Weak July Jobs Report Job creation slowed to just 73,000, and unemployment ticked up to 4.2%, sparking fresh recession fears.
- Trump’s Sweeping Tariffs A new round of global tariffs—ranging from 10% to 41%—was announced, targeting imports from 92 countries. This reignited concerns about inflation, trade retaliation, and supply chain disruptions2.
- Fed’s Hawkish Stance The Federal Reserve signaled it may hold off on rate cuts, citing persistent inflation and strong labor data. That dampened investor hopes for monetary easing.
- Sector-Specific Pressure Health care and real estate stocks led the decline, with political pressure mounting on drug pricing after Trump’s letter to pharma giants.
- Seasonal Weakness August is historically one of the weakest months for stocks, and elevated valuations combined with softening performance added to the jitter
The stocks decline yesterday was driven by the combination of new tariffs sowing trade uncertainty and a weak labor market report signaling economic slowdown risks on Wall Street.