Global stocks plummeted on Friday as weaker-than-expected US jobs data sparked economic worries and fueled bets for September interest rate cuts. The US dollar also took a tumble, falling 1.37% to 98.66.
The Labor Department reported that the US economy added just 73,000 nonfarm payrolls last month, below economists’ expectations of 110,000. June’s job growth was revised sharply lower to 14,000 from 147,000.
US President Donald Trump ordered his team to fire the commissioner of the Bureau of Labor Statistics, Erika McEntarfer, and nominated by prior President Joe Biden for the role. This move came ahead of key personnel changes at the Federal Reserve, including Governor Adriana Kugler’s early resignation.
Investors also reacted to new tariff announcements from Trump, including tariffs ranging from 10% to 41% on US imports from several major trading partners. The dollar index fell sharply after the data due to increased expectations for rate cuts.
“The market is reacting to the possibility of the economy flipping into recession,” said Luke Tilley, Chief Economist at Wilmington Trust. “The weak jobs data is piling on to weak earnings reports and weak guidance from some corporations.”
Global equities sank, with MSCI’s gauge falling 12.23 points, or 1.32%, to 917.39, its biggest daily drop since mid-April. The Dow Jones Industrial Average fell 542.40 points, or 1.23%, to 43,588.58, and the S&P 500 plummeted 101.38 points, or 1.60%, to 6,238.01.
Oil prices also tumbled, falling about 2.8% after the jobs data and on jitters about a possible production increase by OPEC and its allies. Gold prices rallied to a one-week high as investors sought safety after the weak jobs report.
The dollar index’s decline caused some investors anxiety at a time when Trump has loudly disagreed with Fed rate policies. “No matter what the economic picture in the United States, the one thing that holds the US dollar strong in the eyes of the world is the authority and independence of the Federal Reserve,” said Juan Perez, senior director of trading at Monex USA.
Source: https://www.reuters.com/world/china/global-markets-wrapup-9-graphics-2025-08-01