The session results indicate that the Dow Jones Industrial Average lost 1.23%, the Nasdaq fell 2.24%, and the S&P 500 declined 1.60%.
“Investors are beginning to worry that the U.S. economy is weakening faster than anticipated,” commented Sam Stovall of CFRA.
The concern is the deterioration of the labor market in July, with the unemployment rate increasing from 4.1% in June to 4.2%.
Statistics also showed that job creation in July was 73,000, with significant downward revisions for May and June, reaching levels not seen since the onset of the COVID-19 pandemic.
Immediately, Donald Trump ordered the dismissal of Erika McEntarfer, the director of the Bureau of Labor Statistics, accusing her of manipulating the figures for political reasons, without providing evidence.
Donald Trump wrote on his social media: “I ordered my TEAM to fire this Biden’s Political appointee IMMEDIATELY. She must be replaced by someone much more competent and qualified.”
Later, he elaborated, also on his social media: “In my opinion, today’s employment numbers were MANIPULATED to portray Republicans and ME poorly.”
According to Patrick O’Hare of Briefing.com, “investors believe that the Fed (Federal Reserve) will lower its benchmark interest rate” at its next meeting in September.
“Events unfold quickly causing a rapid correction,” highlighted Stovall.
Meanwhile, Trump signed the decree for increased customs tariffs on Thursday, granting a few more days of extension, but not exceeding August 7.
The European Union, Japan, and South Korea will have their products taxed at 15%, and the United Kingdom at 10%, increasing to 30% for South Africa and 39% for Switzerland.
Canada will see these tariffs, not covered by a previous agreement, increase to 35%, while Mexico obtained a 90-day extension and negotiations continue with China, with the ceasefire ending on August 12.
“The trade storm is not over, and more challenges await us,” commented Sam Stovall.
This series of news overshadowed the quarterly results of two technological conglomerates, Apple and Amazon.
Those retreated by 2.50%, despite better-than-expected results in the third quarter of its fiscal year, boosted by the iPhone.
Its profit rose nine percent year-on-year, to $23.4 billion.
Amazon closed with a drop of 8.27%, particularly due to disappointing forecasts it announced, despite a 35% increase in its profit to $18.2 billion.
