Wall Street slumps and bond yields sink following weak hiring numbers and new tariffs
Summary
Stocks in the United States fell, and bond yields dropped due to lower-than-expected job growth and news about upcoming tariffs. The U.S. government reported that fewer new jobs were created in July, leading investors to believe that interest rates might be cut to support the economy. President Trump announced new tariffs, now set to begin on August 7, affecting countries without trade deals with the U.S.Key Facts
- The U.S. reported only 73,000 new jobs in July, which is less than expected.
- The Labor Department reduced previous job estimates for May and June by 258,000.
- The decline in job growth led to a sharp fall in bond yields; the 10-year Treasury yield dropped to 4.24%.
- Investors are anticipating an interest rate cut by the Federal Reserve in September.
- There is now an 80% chance of a quarter-point rate cut by the Fed, according to market predictions.
- New tariffs on imports will start on August 7 for countries without a trade agreement with the U.S.
- The S&P 500 index fell by 1.5%, the Dow Jones dropped 599 points, and the Nasdaq composite decreased by 2%.
- Apple’s stock rose by 0.3% after a positive earnings report.
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