Overview
The U.S. stock market closed with a downturn today following President Trump's announcement of tariff hikes and shockingly poor July employment data. Major indices saw declines across the board, and Treasury yields dropped amid growing expectations for interest rate cuts.
| Nasdaq Composite | S&P 500 |
| Dow Jones Industrial Average | 1 South Korean won equals |
A Major News Story
The implementation of increased tariffs by President Trump has been a significant factor, alongside July's employment data which showed only a 73,000 increase in non-farm payrolls. Previous two months' employment figures were also revised down by 260,000, indicating a sharp loss of labor market momentum. This weakened confidence further, leading to political tensions, with Trump criticizing the Labor Department for allegedly manipulating figures for political purposes.
Economic Indicators for Tomorrow
| Time | Event |
|---|---|
| 23:00 | U.S. July Conference Board Employment Trends Index to be released |
A General Opinion
Market anticipations for a swift rate cut by the Federal Reserve are solidifying, with an 80% probability of a September cut already priced in. Analysts like Ellen Zentner from Morgan Stanley suggest that if upcoming data confirms current trends, a rate cut in September is likely, possibly by as much as 50 basis points to offset lost time and slow economic growth.
