US market today: S&P 500 sees steepest drop since June; Dow Jones & Nasdaq slump over 1% on weak hiring data

Wall Street stocks tumbled on Friday after unexpectedly weak US job data and renewed tariff uncertainty under President Donald Trump sparked a broad selloff across equity markets and sent Treasury yields plunging.


The S&P 500 dropped 1.2%, its worst single-day performance since June, and appeared headed for a weekly loss after a streak of record highs. The Dow Jones Industrial Average shed 451 points, or 1%, while the tech-heavy Nasdaq Composite sank 1.6%, AP reported.


The sharp market reaction followed a disappointing July employment report from the Labor Department, which showed that employers added only 73,000 jobs during the month — far below economist forecasts. Revisions also slashed 258,000 jobs from May and June figures, further dampening sentiment.


Bond yields fell sharply as expectations of a rate cut by the Federal Reserve surged. The yield on the benchmark 10-year Treasury dropped to 4.24% from 4.39%, while the two-year yield, which closely tracks Fed policy outlook, plunged to 3.73% from 3.94%.


Markets are now pricing in an 80.9% chance of a quarter-point rate cut at the Fed's September policy meeting, according to CME FedWatch data — up from under 38% a day earlier.


“The Fed may see a clearer path to a September cut, especially if upcoming data confirms this trend,” said Ellen Zentner, chief economic strategist at Morgan Stanley Wealth Management. “What had looked like a Teflon labor market showed some scratches this morning, as tariffs continue to work their way through the economy.”


President Trump’s move to again delay the effective date of his proposed import tariffs — now set to kick in on August 7 for dozens of countries that haven’t yet reached deals with the US — added to the market volatility. Businesses have warned that the unpredictable rollout of these tariffs is complicating financial forecasts and squeezing margins.


Walmart and Procter & Gamble are among major firms that have cited higher costs due to import duties, with concerns that price hikes may ultimately be passed on to US consumers.


Tech stocks bore the brunt of Friday’s selloff. Amazon.com shares tumbled 7.7% despite strong quarterly results, as investors focused on slowing growth in its cloud unit. Apple also declined 1.8% despite topping profit and revenue expectations. Both firms face increased exposure to tariff-related headwinds.


Energy major Exxon Mobil fell 1.7% after reporting its lowest profit in four years, weighed by lower oil prices amid rising OPEC+ output.


Global markets mirrored the US selloff. European and Asian indices ended lower on growing concerns about global economic growth, inflation, and the impact of Trump’s trade policy.

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