{"id":39606,"date":"2025-08-01T15:09:05","date_gmt":"2025-08-01T15:09:05","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/39606\/"},"modified":"2025-08-01T15:09:05","modified_gmt":"2025-08-01T15:09:05","slug":"wall-street-slumps-and-bond-yields-sink-following-weak-hiring-numbers-and-new-tariffs","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/39606\/","title":{"rendered":"Wall Street slumps and bond yields sink following weak hiring numbers and new tariffs"},"content":{"rendered":"\n

NEW YORK (AP) \u2014 Stocks slumped in morning trading on Wall Street Friday and Treasury yields fell sharply after the government reported a sharp slowdown in hiring<\/a> last month.<\/p>\n

Markets are also reacting to the latest tariff news<\/a>. President Donald Trump once again extended the date at which punishing import taxes will take effect for a long list of countries. The tariffs are now expected to take effect Aug. 7 for countries that have yet to make a deal with the U.S.<\/p>\n

The S&P 500 fell 1.4% and is on track to close the week with a loss. The Dow Jones Industrial Average fell 536 points, or 1.2% as of 10:28 a.m. Eastern. The Nasdaq composite fell 1.8%.<\/p>\n

Worries on Wall Street about a weakening economy were heavily reinforced by the latest report on job growth in the U.S. Employers added just 73,000 jobs in July. That is sharply lower than economists expected. The Labor Department also reported that revisions shaved a stunning 258,000 jobs off May and June payrolls.<\/p>\n

The surprisingly weak hiring numbers led investors to step up their expectations for an interest rate cut in September.<\/p>\n

The yield on the 10-year Treasury fell to 4.24% from 4.39% just before the hiring report was released. That’ a big move for the bond market. The yield on the two-year Treasury, which more closely tracks expectations for Federal Reserve<\/a> actions, plunged to 3.75% from 3.94% just prior to the report’s release.<\/p>\n

The market is betting that the Fed may finally have to act to cut interest rates in order help bolster a weak jobs market. It has held rates steady since December. A cut in rates would give the job market and overall economy a boost, but it could also risk fueling inflation, which is hovering stubbornly above the central bank\u2019s 2% target.<\/p>\n

An update on Thursday for the Fed’s preferred measure of inflation showed that prices ticked higher in June, rising to 2.6% from 2.4% in May. The Fed has remained cautious about cutting interest rates because of worries that tariffs will add more fuel to inflation and weigh down economic growth.<\/p>\n

The central bank, though, also counts \u201cmaximum employment\u201d as one of its two mandates along with keeping prices stable. Issues with either of those goals could prompt a shift in policy.<\/p>\n

Wall Street is now betting that the Fed will cut rates at its September meeting. Traders see a 81.4% chance of a quarter-point rate cut at that meeting, up from just under 38% a day earlier.<\/p>\n

The Fed held rates steady<\/a> again at its most recent meeting this week. Fed Chair Jerome Powell has been pressured by Trump<\/a> to cut the benchmark rate, though that decision isn\u2019t his to make alone, but belongs to the 12 members of the Federal Open Market Committee.<\/p>\n

Story Continues <\/p>\n

\u201cWhat had looked like a Teflon labor market showed some scratches this morning, as tariffs continue to work their way through the economy,\u201d said Ellen Zentner, chief economic strategist for Morgan Stanley Wealth Management. \u201cA Fed that still appeared hesitant to lower rates may see a clearer path to a September cut, especially if data over the next month confirms the trend.”<\/p>\n

Businesses, investors and the Fed are all operating under a cloud of uncertainty from Trump\u2019s tariff policy. The latest shift in the on-again-off-again policy gives 66 countries, the European Union, Taiwan and the Falkland islands another seven days, instead of taking effect on Friday.<\/p>\n

Companies have been warning investors that the policy, with current and proposed tariffs, has made it difficult to make forecasts. Walmart, Procter & Gamble and many others have warned about import taxes raising costs, eating into profits raising prices for consumers.<\/p>\n

Internet retail giant Amazon<\/a> fell 6.2%, despite reporting encouraging profit and sales for its most recent quarter. Technology behemoth Apple<\/a> fell 0.5% after also beating Wall Street\u2019s profit and revenue forecasts. Both companies face tougher operating conditions because of tariffs.<\/p>\n

Exxon Mobil fell 1.3% after reporting that profit dropped to the lowest level in four years and sales fell as oil prices slumped as OPEC+ ramped up production.<\/p>\n

Stocks in Europe and Asia also fell.<\/p>\n

Damian J. Troise, The Associated Press<\/p>\n","protected":false},"excerpt":{"rendered":"NEW YORK (AP) \u2014 Stocks slumped in morning trading on Wall Street Friday and Treasury yields fell sharply…\n","protected":false},"author":2,"featured_media":39607,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[45,49,48,46,2071,28596,862,25899,6495],"class_list":["post-39606","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-ca","tag-canada","tag-economy","tag-federal-reserve","tag-list-of-countries","tag-president-donald-trump","tag-treasury-yields","tag-wall-street"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/39606","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=39606"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/39606\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/39607"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=39606"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=39606"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=39606"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}