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Dow tumbles more than 500 points as job numbers shock Wall Street and tariff ‘panic’ sets in

By
Chris Morris
Chris Morris
Former Contributing Writer
By
Chris Morris
Chris Morris
Former Contributing Writer
August 1, 2025 at 8:22 PM UTC
Trump pointing his finger
President Trump in the Oval Office.Chip Somodevilla—Getty Images
  • Stocks fell in after a weak jobs report and the rollout of Trump’s new tariff rates. July’s figures fell short of expectations, and the Labor Department drastically reduced the number of new jobs for June and May. Trump, meanwhile, made last-minute changes to tariff rates ahead of his self-imposed deadline.

More last-minute modifications to tariff rates and a disappointing July jobs report weighed heavily on investors on Friday.

At the close of trading, the Dow Jones Industrial Average tumbled 542 points (-1.23%). The Nasdaq sank 2.24%, and the S&P 500 plunged -1.6%.

Nonfarm payrolls were up by 73,000 last month, which was far less than the 100,000 economists were expecting. In addition, the Labor Department revised previous months downward, saying June job growth, which was previously reported at 147,000, was actually just 14,000. May’s count was also changed from 144,000 to 19,000.

That indicated the job market has been weak for quite a while now, something many Americans suspected, despite the bullish jobs numbers. The only possible bright side to that is it could give the Federal Reserve a reason to cut interest rates sooner than expected.

“Today’s data signals labor market conditions continue to cool and while the softer conditions don’t warrant a warning signal for investors, it should put market participants including the Fed on notice that economic conditions are shifting,” said Charlie Ripley, senior investment strategist for Allianz Investment Management.

Before the jobs report came out, tariffs weighed on stocks, though. Overnight, Trump updated the levies, which now range from 10% to 41%. Even goods that were transshipped to avoid the tariffs will face a 40% tariff now. And Canada will now have a 35% levy, up from 25%.

Macquarie strategists Thierry Wizman and Gareth Berry, in a note to investors, wrote trading at the start of the month was beginning “with a bit of panic.”

Amidst all this, Trump resumed his public criticisms of Fed chair Jerome Powell, seemingly encouraging the Fed Board to launch a coup.

“Jerome ‘Too Late’ Powell, a stubborn MORON, must substantially lower interest rates, NOW,” Trump wrote. “IF HE CONTINUES TO REFUSE, THE BOARD SHOULD ASSUME CONTROL, AND DO WHAT EVERYONE KNOWS HAS TO BE DONE!”

The weak market open comes after three consecutive days of losses for the S&P 500. So far this year, the S&P 500 has increased 6.6%. The Dow is up 2.45% and the Nasdaq has rallied 6.9%.

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About the Author
By Chris MorrisFormer Contributing Writer

Chris Morris is a former contributing writer at Fortune, covering everything from general business news to the video game and theme park industries.

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