U.S. Markets Slide Sharply After Tariffs, Weak Jobs Report; Trump Fires BLS Chief

New York-U.S. stocks plunged on Friday following President Donald Trump’s announcement of sweeping new tariffs and a disappointing jobs report that highlighted a significant slowdown in hiring. The combination sparked fresh fears over the health of the economy and rattled investors.

The Dow Jones Industrial Average dropped 542 points, or 1.2%, while the S&P 500 fell 1.6%. The Nasdaq, heavily weighted with tech stocks, slid 2.2%, marking one of its worst days in recent months.

The selloff came a day after President Trump signed an executive order imposing tariffs of 10% to 41% on nearly 70 countries. The move, described by a senior administration official as the beginning of a “new system of trade,” follows a similar round of reciprocal tariffs earlier this year that had initially been delayed.

In a further shock to markets, the U.S. Labor Department reported that only 73,000 jobs were added in July, far below the 130,000 monthly average for 2025. Worse still, the Bureau of Labor Statistics (BLS) revised sharply downward the job gains for May and June, cutting them to 19,000 and 14,000 respectively, previously reported as over 130,000 each.

In a controversial move hours after the report’s release, President Trump fired BLS Commissioner Erika McEntarfer, a Biden appointee confirmed by the Senate in 2024. On social media, Trump accused her without evidence, of “faking” employment data.

The latest data and policy moves have shaken confidence in what had been a resilient stock market. Prior to Friday’s losses, the Dow was up 2% for the year, the S&P 500 had gained 6%, and the Nasdaq was 8% higher.

“Today’s jobs report was underwhelming as it missed economists’ expectations, but it’s the stark revisions to the prior two months that really stand out,” said Bret Kenwell, a U.S. investment analyst at eToro. “Combined with yesterday’s hotter-than-expected inflation data, this may have thrown some cold water on the rally.”

The newly signed tariffs are set to take effect on August 7, following multiple delays by the Trump administration amid market instability. The economic impact of the tariffs, now coupled with weaker hiring, has prompted analysts to warn of heightened risks to growth in the coming months.