Tariffs and Jobs Data Trigger Market Rout on Wall Street

The stock market on Wall Street experienced significant declines during Friday trading because investors responded to new U.S. trade restrictions and poor employment statistics. The markets experienced increased volatility because President Trump introduced steep tariffs against Canada Brazil India and Taiwan while investors already faced uncertainty after the July employment numbers came in below expectations.

The Dow Jones Industrial Average declined by 570 points which represents a 1.3% decrease while the S&P 500 index dropped 1.5% and the Nasdaq index fell 2% making it their worst performance since April. The CBOE Volatility Index reached its highest level in six weeks because investors became increasingly worried.

The July employment numbers showed only 73,000 new jobs while previous months experienced significant downward revisions. The economy shows limited job creation in healthcare and social assistance sectors yet its overall hiring pace continues to decline according to economic analysts. The weak employment data increased the likelihood of a Federal Reserve rate reduction in September to 80% according to CME's FedWatch tool.

Amazon stock prices dropped 8% after the company released disappointing cloud computing performance. Apple stock decreased by 2% despite meeting market expectations because CEO Tim Cook announced $1.1 billion in tariff-related expenses. The financial sector performed poorly because Coinbase stock price declined 15.6% following weak profit results. The company Reddit defied market trends by experiencing a 22% surge in stock price following its successful earnings announcement.

Trump demanded Fed Chair Jerome Powell to lower interest rates but Powell maintained a reserved stance. The market lost all its previous gains from trade optimism and AI-driven rallies throughout the week.