Markets seize up after unexpected 73 k jobs gain

Mace | 4th August 2025 | Policy & Think Tanks, Politics

NEW YORK, NEW YORK - AUGUST 01: Traders work on the floor of the New York Stock Exchange during afternoon trading on August 01, 2025 in New York City. All three major stock indexes tumbled with the Dow Jones leading the way losing over 500 points amid signs of a weakening economy and U.S. President Donald Trump’s modified tariff rates. (Photo by Michael M. Santiago/Getty Images)

Markets plunge after weak jobs data and sharp downward revisions.

U.S. markets plunged after the July jobs report revealed only about 73,000 new payrolls and steep downward revisions to prior months’ data. Investors interpreted the weak figures and revised losses as a sign that inflation pressures might ease, but at the same time it stirred concerns over whether the Federal Reserve should hold rates longer or pivot sooner. The S&P 500 fell around 1.6 percent, the Nasdaq dropped over 2 percent, and the Dow suffered its worst weekly slide in months . That report exposed revision losses totalling roughly 258,000 jobs from May and June, casting doubt on prior optimism about labour strength. The unemployment rate inched up from 4.1 percent to 4.2 percent and average wages continued edging higher, posing the risk of wage inflation even amid falling hiring. The Fed’s outlook suddenly appeared less straightforward. Markets reacted with visceral speed. The S&P lost about 1.6 percent, the Nasdaq slumped more than 2 percent, and the Dow fell roughly 1...

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