It’s a rough start to the new month for Wall Street, as major U.S. stock indices plunged by midday Friday, setting the stage for a negative weekly close.
- SPY ETF is breaking past support. Check the chart here.
Trade war concerns resurfaced after President Donald Trump announced sweeping new tariffs on countries without a formal trade agreement with the U.S. Key levies include 25% on imports from India, 39% from Switzerland, 20% from Taiwan, 30% from South Africa, 35% on Canadian goods, and a staggering 50% on Brazilian exports.
Risk sentiment soured further following a surprisingly weak jobs report.
While July payrolls rose by 73,000—well below the 110,000 expected—revisions to prior months shocked markets: May and June payrolls were slashed by a combined 258,000 — the largest downward revision since 2020 — pointing to deeper cracks in the labor market than previously thought.
The S&P 500 dropped 1.2% to 6,260, the Nasdaq 100 slid 1.3% to 22,900, and the Dow Jones shed nearly 500 points, or 1.1%.
The CBOE Volatility Index (VIX) spiked 18%, marking its biggest one-day jump since April 10.
Expectations for a Federal Reserve rate cut in September surged. Fed funds futures now imply nearly an 80% chance of a 25-basis-point cut, just …