The U.S. stock market lost more than $1 trillion in value, driven by rising inflation and new trade tariffs that sparked broad investor panic.
The Dow Jones fell 1.2%, the S&P 500 slid 1.6%, and the Nasdaq dropped 2.2%, leading to one of the largest single-day losses in recent years. The dollar recorded its steepest one-day fall since April 10, while Treasury yields declined sharply, reflecting risk aversion across markets.
Weak Jobs Data and Political Tensions Weigh on Markets
The July jobs report showed just 106,000 new positions added over the past three months, far below expectations. Following the release, President Trump announced the dismissal of Bureau of Labor Statistics Commissioner Erika McEntarfer, accusing her—without evidence—of manipulating jobs data. The move, combined with his aggressive tariff plan, further pressured investor sentiment.
New U.S. tariffs escalated global trade tensions. Switzerland now faces a 39% levy, while Canada faces 35% duties on non-compliant goods. Both countries refrained from immediate retaliation. Meanwhile, Mexico received a 90-day extension to finalize a revised trade agreement.
Bitcoin Falls Amid Market Turmoil
Bitcoin briefly slipped below $130,000 as risk-off sentiment hit digital assets. Analysts noted signs of a potential drop toward $112,000 if selling pressure continues.
CoinGlass data reported over $1 billion in liquidations across crypto derivatives within 24 hours. This wave of liquidations wiped out long and short positions alike, intensifying the market downturn.
WatcherGuru posted on X:
“JUST IN: 🇺🇸 $1.11 trillion wiped out from US stock market today.”
Analysts remain divided on how long this volatility will persist as monetary policy tightens and geopolitical tensions grow.