Wall Street tumbles after job growth disappoints in July

In the United States, the latest job growth report revealed disappointing numbers, showing that only 73,000 jobs were added in July 2025. This figure fell significantly short of economists' expectations, prompting concerns about the strength of the U.S. economy. The weak data contributed to a significant decline in the stock market, with the S&P 500 experiencing its worst day since May 21, reflecting investor unease. Fears regarding U.S. economic performance heightened following President Donald Trump's decision to dismiss the head of the agency responsible for monthly job figures, creating apprehension over potential manipulation of future data. The consequences of the dismal job numbers exacerbated worries about a weakening labor market, leading investors to increase their bets that the Federal Reserve might lower interest rates in their September meeting. This speculation has substantial implications for both the bond and stock markets, as a reduction in interest rates could stimulate job growth and provide a boost to the overall economy. However, this could also raise inflation risks, given that current inflation rates are already above the Federal Reserve's target of 2%. Furthermore, the outlook remained complicated due to ongoing uncertainties surrounding trade policies. Businesses such as Walmart and Procter & Gamble have publicly expressed concerns over increased costs attributed to import taxes, which threaten to diminish profit margins and ultimately burden consumers through higher prices. The interconnectedness of these issues illustrates the complex economic landscape that businesses and investors must navigate. In overseas markets, reaction to the U.S. job data was mixed. For example, Japan's Nikkei 225 index saw significant losses, dropping 1.6%, while South Korea's Kospi index experienced gains, increasing by 0.7%. The reactions underscore the variety of responses from Asian markets as investors gauge the implications of U.S. economic conditions on global markets. As investors digest these developments, attention will focus on upcoming data releases that may provide further insights into the state of the economy, particularly regarding inflation and employment figures.