US stocks closed lower on Friday after President Donald Trump signed new tariffs on dozens of countries. The Dow Jones Industrial Average dropped 542 points, or 1.2%, while the S&P 500 fell 1.6%. A weak jobs report showed a slowdown in hiring over recent months, with the US adding only 73,000 jobs in July, below expectations.
The new tariffs will apply to nearly 70 countries, ranging from 10% to 41%, and are set to take effect on August 7. This move comes after Trump previously delayed the tariffs twice, first until April 2 and then again until August 1.
The jobs report also showed significant revisions to previous months, with May’s estimated job additions dropping from 139,000 to 19,000, and June’s estimate falling from 147,000 to 14,000. This has raised concerns among economists.
Trump fired the Bureau of Labor Statistics Commissioner, Erika McEntarfer, on Friday, accusing her of “faking” statistics. However, she was a Biden appointee confirmed by a bipartisan vote in the Senate in 2022.
The new tariffs and jobs report have disrupted the resilient performance of the stock market, which has seen gains of 2% this year for the Dow, 6% for the S&P 500, and 8% for the Nasdaq. Analysts say that this move may have “thrown some cold water” on the rally, with inflation expectations also running high.
Source: https://abcnews.go.com/Business/stocks-tumble-after-trump-unveils-sweeping-new-tariffs/story?id=124272914