U.S. stock indices declined on Friday due to weakening jobs data and renewed trade war tensions.
Weak U.S. Jobs Data
Stocks also fell as data revealed that only 73,000 jobs were added in July, significantly lower than the expected 104,000. The increase in the unemployment rate from 4.1% to 4.2% left investors concerned. Market analysts suggest that these weak figures might lead the Federal Reserve to take action at its next meeting in September.
Rising Trade War Concerns
As President Donald Trump’s deadline for trade deals approaches, fresh uncertainties hit the market with the U.S. imposing tariffs on its top trading partners, including Canada and India. An executive order signed Thursday imposed a 35% tariff on Canadian goods, while India faces a 25% tariff.
Markets Feeling Uncertainty
The Dow Jones dropped more than 500 points, with the S&P 500 slipping 1.2% and Nasdaq losing 1.5%. However, there is hope for potential negotiations as the effective date of new tariffs was delayed by seven days, providing a window for further discussions.
Overall, the current stock market conditions in the U.S. are influenced by several factors, including weak employment data and lack of clarity in trade relations, contributing to deteriorating investor sentiment.
