U.S. stocks tumble amid sweeping tariffs and soft jobs data

U.S. markets ended the week on a rough note as investors reacted to a combination of aggressive new tariffs and disappointing employment figures. Stocks opened lower and stayed under pressure throughout the day. By the close, the Dow Jones Industrial Average had shed more than 500 points, while the S&P 500 and Nasdaq also recorded significant losses.

The selloff began after the White House announced a new round of tariffs on imported goods from dozens of countries. The average rate on targeted imports rose from around 13 percent to roughly 15 percent, with certain categories facing increases above 40 percent. These measures were presented as a way to support domestic manufacturers and protect critical supply chains. However, many investors saw them as a risk to corporate earnings and a potential trigger for inflation. Companies that rely on foreign-made components are now facing higher costs, and there is concern that trading partners could respond with their own restrictions.

Markets were further unsettled by the release of the July jobs report. The Labor Department reported that the economy added just 73,000 jobs during the month, far fewer than the estimates of more than 110,000. In addition, figures for the previous two months were revised lower. The data suggested that the labor market is losing momentum after a period of steady gains. A softer job market could lead to slower consumer spending, which has been a key driver of growth in recent quarters.

Bond markets reacted quickly. Yields on U.S. Treasury notes fell as traders began to price in the possibility that the Federal Reserve might pause interest rate hikes or consider cuts later in the year. At the same time, the risk of tariff-related price increases is keeping inflation concerns alive, leaving the central bank in a challenging position.

Sector performance reflected the broader concerns. Industrial and materials stocks dropped sharply on worries about higher input costs and weaker demand. Consumer discretionary shares also slipped, as higher prices could weigh on household budgets. Consumer staples managed to hold up better, reflecting the perception that essential goods are less sensitive to economic slowdowns. Financial stocks moved in both directions as rate expectations shifted.

Analysts described the market’s reaction as a response to a growing sense of uncertainty. The combination of trade tensions, slowing job growth, and policy questions is creating a more volatile environment. Investors are now looking ahead to corporate earnings reports, economic data, and any new signals from the Federal Reserve. Friday’s trading sent a clear message that optimism about smooth growth and low volatility has faded. Market participants are preparing for a more challenging landscape in the weeks ahead.