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Stock Market Shaken by Weak Jobs Data and Trump’s Tariff Shock

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Stocks witnessed a dramatic tumble as August began, with Wall Street shaken by weaker-than-expected U.S. jobs data and a sudden rise in tariff rates announced by President Donald Trump. The stock market fell sharply, signaling renewed fears of a slowing economy. The Dow plunged over 500 points, while the Nasdaq and S&P 500 followed suit. Fresh tariffs on Canadian and transshipped goods, paired with poor payroll growth, cast a dark shadow over investor sentiment. Hopes of a Federal Reserve rate cut now appear too late to rescue the sinking confidence.

📰 STORY HIGHLIGHTS READ BOX:

  • Dow plunges 502 points; Nasdaq down 2.1% as economic jitters mount

  • July jobs rise only 73,000 vs. 100,000 forecast; prior months revised sharply down

  • Big banks slide: JPMorgan, BofA, Wells Fargo each fall over 3%

  • Fed rate cut odds surge to 66% as market bets on urgent policy response

  • Trump ramps up tariffs: Canadian imports now face 35% levy

  • Amazon falls 7% on weak forecast; Apple bucks trend with 2% jump

  • 25 S&P 500 stocks hit 52-week lows, many to early-pandemic levels

  • Only 7 reach new highs, including Northrop Grumman and CBOE

U.S. markets began the new month on shaky ground, as investors confronted a potent mix of disappointing employment data and intensified tariff pressures. The fragile optimism that had propped up equities in recent weeks gave way to widespread selloffs, rattling sectors from banking to tech.

The Dow Jones Industrial Average tumbled by 502 points, or 1.4%, as investors digested mounting evidence of an economic slowdown. The broader S&P 500 fell 1.6%, while the Nasdaq Composite suffered the steepest loss, dipping 2.1%, weighed down by dismal corporate guidance and a sudden shift in market sentiment.

At the heart of the downturn was July’s jobs report—a data point often viewed as a litmus test for the broader economy. Instead of the anticipated 100,000 gain in nonfarm payrolls, the economy managed to add only 73,000 jobs last month, according to the Labor Department. Worse yet, revisions to prior months painted an even grimmer picture: June’s figures were slashed to a mere 14,000 from 147,000, and May’s count was revised downward to just 19,000 from the previously reported 125,000.

This disheartening trend suggested not just a one-off miss, but a more entrenched softening in labor market momentum.

The market’s reaction was swift. Banking stocks, traditionally seen as bellwethers for economic health, took a heavy blow. JPMorgan Chase retreated by roughly 4%, while Bank of America and Wells Fargo both shed more than 3%. Investors grew wary of how a slower economy might crimp loan demand and squeeze financial margins.

Industrial giants weren’t spared either. Shares of GE Aerospace and Caterpillar slipped 3%, reflecting fears that demand for machinery and transport services may falter amid growing economic headwinds.

“The numbers gave the Fed the ammunition it needs now to cut in September,” said Jay Woods, Chief Global Strategist at Freedom Capital Markets.
“But unfortunately, now it looks too little too late.”

That sentiment echoed across trading floors. Just days ago, Federal Reserve Chair Jerome Powell had hinted at a more cautious approach, suggesting the central bank wanted to assess the impact of tariffs on inflation before making a move. But with labor figures faltering, market expectations pivoted quickly. Traders now place a 66% chance on a rate cut as early as September, according to CME Fed futures data—up sharply from midweek levels.

As if the labor news wasn’t enough, global trade tensions escalated after President Donald Trump moved forward with a round of modified tariffs. The White House announced overnight hikes ranging from 10% to 41%, including a new 40% penalty on goods transshipped in efforts to sidestep duties. In a particularly aggressive turn, Canadian imports—already facing a 25% tariff—will now be hit with a 35% levy.

Markets reeled at the breadth of the new duties, particularly given Canada’s status as a key U.S. trading partner.

Jeffrey Schulze, Head of Economic and Market Strategy at ClearBridge Investments, said the jobs report added a worrying dimension to already heightened trade anxieties.
“While investors have been viewing the start of the Fed’s cutting cycle as a positive for risk assets, today’s release is best characterized as ‘bad news is bad news.’”
“With job creation now hovering at stall speed, and a tariff wall looming ahead, there’s real concern that we could soon see negative payroll prints,” he warned.
“That may bring recession fears roaring back.”

Tech stocks—typically the engines of market optimism—also faltered. Amazon tumbled more than 7% after forecasting weaker-than-expected operating income for the current quarter, casting a shadow over the sector. However, Apple provided a rare bright spot, rising 2% after topping Wall Street’s earnings and revenue expectations.

The overall market mood remained tepid, despite upbeat results from companies like Microsoft and Meta Platforms earlier in the week. Thursday had already marked the S&P 500’s third straight daily decline. Early-session intraday highs evaporated as the tech rally lost momentum, leaving little resistance against Friday’s broader pullback.

In total, 25 S&P 500 companies touched new 52-week lows—a stark signal of declining investor confidence. Among them:

  • Charter Communications (lowest since May 2024)

  • Chipotle Mexican Grill (since Nov. 2023)

  • Lululemon, UnitedHealth, and UPS (each hitting levels unseen since early pandemic months)

  • Accenture, Dow Inc, CarMax, and Tyson Foods also marked fresh lows

On the upside, only seven S&P 500 stocks reached new highs.
These included:

  • Altria, trading at its best level since 2018

  • Northrop Grumman, hitting an all-time peak

  • CBOE Holdings, ResMed, American Electric Power, Evergy, and Xcel Energy, all reaching multi-year or record levels

Looking ahead, all eyes turn to how the Fed navigates mounting economic and geopolitical risks. As the delicate balance between policy and data becomes more urgent, investors are bracing for a volatile ride in the weeks to come.

As investors absorb the jolt of frail job growth and aggressive tariff revisions, the stock market stands at a critical crossroads. The sharp decline across major indexes reflects growing unease about the strength of the U.S. economy. While hopes for a timely Federal Reserve rate cut remain alive, they may no longer be enough to soothe market nerves. With trade tensions deepening and employment gains fading, Wall Street braces for turbulent days ahead—where every move, policy, or print could tip the fragile balance of investor confidence.

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NVIDIA Shrugs Off Trump Tariff Wave as $4 Trillion Crown Shines Bright

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In a stirring show of poise amid policy tremors, Jensen Huang, CEO of chip giant NVIDIA, has cast aside fears over Donald Trump’s tariff ambitions, voicing unshaken faith in America’s tech resilience. Fresh from a celebratory White House meeting, Huang stood firm on semiconductor self-reliance, calling it vital for security, skill revival, and industrial strength. As Trump eyes tariff talks with China and reshoring strategies, NVIDIA—now the world’s most valuable company—finds itself at the storm’s center, balancing bold success with uncertain trade tides.

STORY HIGHLIGHTS

  • NVIDIA CEO Jensen Huang says U.S. tech firms can endure tariffs, citing past resilience.

  • Trump and Huang met on July 10, celebrating NVIDIA’s $4 trillion market valuation.

  • U.S. semiconductor manufacturing is vital to national security and skilled labor revival, says Huang.

  • NVIDIA relies on Taiwan’s TSMC, which may be impacted by new U.S. tariffs.

  • Company is building supercomputers in Texas and packaging them in Arizona.

  • Huang heads to China next week, but trade deal timeline remains unknown.

As the debate over U.S. tariffs heats up, Jensen Huang, CEO of NVIDIA—the world’s most valuable company—offered a calm and measured outlook during a recent interview, underscoring his confidence in the resilience of America’s tech sector. His comments came just days after a notable White House meeting with former President Donald Trump, where the two discussed key trade, manufacturing, and technology issues.

The moment comes at a time of growing uncertainty, as Trump reintroduces a tough stance on trade and tariffs—particularly with China—while eyeing a broader reshaping of the global technology supply chain. But Huang, at the helm of a company that now sits at the heart of artificial intelligence and chip innovation, appears unshaken.

“We’ve Survived Before, We’ll Survive Again”

In his remarks, Huang noted that the tech industry is no stranger to regulatory and economic challenges. He pointed to the long history of trade policies, tariffs, and other regulatory disruptions that companies have faced.

“Every single year there were rules, taxes, tariffs, policies—we survived,” Huang said.

The NVIDIA founder, whose company just became the first in history to reach a $4 trillion market value, made clear that such obstacles are part of the business landscape—and not a reason to panic. Huang’s own journey, from Taiwan to the top of the American tech world, lends weight to his resilient tone.

“Nobody likes disruptions and no one likes abrupt changes,” he acknowledged, before adding, “But these settlements will—President Trump will settle these deals and countries will reorganize and resettle, and we’ll work through it.”

Trump Congratulates NVIDIA on Market Milestone

The high-level meeting on July 10 between Huang and Trump came just as NVIDIA hit its historic market valuation. Huang described Trump as visibly excited and proud of the achievement.

“He spent a lot of time congratulating me and telling everybody all around him what a great achievement it was,” said Huang, recalling the mood inside the White House.

The meeting marked the fifth time the two had sat down together in recent months—a sign of both Trump’s interest in the booming semiconductor industry and NVIDIA’s rising influence in Washington.

The next day, Huang also met with Treasury Secretary Scott Bessent to continue discussions around manufacturing, trade, and future tech strategies.

Semiconductors, Tariffs, and AI: The Critical Crossroads

At the center of the conversation sits the delicate intersection of artificial intelligence, semiconductor supply chains, and looming U.S. tariffs. NVIDIA designs high-performance chips used in everything from generative AI models to advanced computing systems. But the company doesn’t manufacture those chips itself.

Instead, production is outsourced to major foundries like Taiwan’s TSMC, which would be directly impacted by Trump’s proposed import tariffs. With Trump signaling an aggressive push for reshoring tech manufacturing, the implications for companies like NVIDIA are significant.

Yet Huang insists that such policy shifts, while important, are far from insurmountable.

“I have every confidence that the world is going to survive this,” he said. “Companies will survive this, and whatever it turns out to be, we’ll make the best of it.”

Backing Trump’s Manufacturing Vision

While some in the tech world have expressed concern over Trump’s trade agenda, Huang appears more aligned with certain elements of it—especially when it comes to domestic manufacturing.

Speaking to USA TODAY on July 11, Huang emphasized the need to bring semiconductor production back to the U.S., describing it as both a strategic and societal imperative.

“Absolutely. I believe President Trump’s vision—his bold vision to manufacture in the United States—is great for our industries, it’s great for our society,” said Huang.

He noted that the loss of manufacturing capabilities over recent decades hasn’t just weakened the supply chain—it has taken a toll on American workers, craftspeople, and communities.

“We’ve lost a lot of manufacturing capability and skills,” he said. “That’s really great for skilled craft and people that work with their hands and build things. We want to celebrate that. We want to bring that back to the United States.”

Security, Resilience, and Skilled Labor

For Huang, the manufacturing push is about more than just economics—it’s also about national security and resilience. The ability to control supply chains, especially for something as critical as semiconductors, is key to ensuring stability in an increasingly uncertain world.

“It’s very important to national security, industrial security, supply chain resilience,” he said.

NVIDIA, for its part, has already begun investing in U.S. operations. The company is currently building supercomputers in Texas and packaging them in Arizona, signaling a shift that mirrors the government’s calls for greater self-reliance.

China Trip Ahead, But No Trade Talk Timetable

Huang will travel to China next week. He confirmed that he discussed the trip with Trump, but made clear that no detailed conversations around trade negotiations were held during the White House meeting.

“We did not discuss trade negotiations between the two countries,” Huang said. “I do not know when a final agreement could come to fruition.”

For now, the future of U.S.-China trade remains uncertain. But Huang’s message is clear: NVIDIA will continue to adapt, just as it always has.

As trade winds shift and tariff tensions rise, Jensen Huang’s composed stance signals more than just corporate confidence—it reflects a broader belief in innovation’s ability to weather political storms. With NVIDIA now crowned as the world’s most valuable tech empire, its trajectory underlines a deeper message: resilience, vision, and strategic production can outpace uncertainty. While Trump’s tariff strategies evolve and global negotiations unfold, NVIDIA remains poised at the helm of the AI revolution—undaunted, unwavering, and firmly rooted in both American ambition and global reach.

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Canada Pulls Plug on Digital Tax in Last-Minute Move to Woo US

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In a sharp and sudden twist, Canada scrapped its Digital Services Tax just hours before its rollout, dodging what could have become a bruising trade battle with the United States. The tax, aimed at tech giants like Amazon and Google, sparked firm objections from Washington, with former President Trump calling it a “deal breaker.” As tensions cooled, trade talks are now set to resume. With global markets watching, this unexpected retreat may unlock a fragile window of economic cooperation—if both sides play their next moves with care.

STORY HIGHLIGHTS

  • Canada cancels Digital Services Tax just hours before enforcement deadline.

  • 3% tax would have applied to major U.S. tech firms like Google, Amazon, Meta, and Apple.

  • Trump threatened tariffs, calling the tax a “blatant attack” on American innovation.

  • U.S. Commerce Secretary welcomes Canada’s decision, markets rally in response.

  • Finance Minister Champagne to introduce repeal legislation in Parliament.

  • Canada emphasizes support for a multilateral digital taxation framework.

  • Canada remains a critical U.S. trade partner, with exports and imports exceeding $760 billion in 2023.

  • Biden administration also challenged the DST on USMCA compliance grounds.

In a last-minute reversal that could reshape the trajectory of North American trade relations, Canada has announced it is abandoning its planned Digital Services Tax (DST) — a move that comes mere hours before the levy was set to take effect on Monday. The sudden policy shift is widely seen as a strategic effort to salvage trade negotiations with the United States, which had reached a boiling point in recent days.

The decision was made public late Sunday night through a statement issued by Canada’s finance ministry. It noted that Canadian Prime Minister Mark Carney and U.S. President Donald Trump would now resume direct trade talks, with the goal of reaching a comprehensive agreement by July 21. The announcement came after mounting pressure from Washington, which viewed the DST as a direct threat to American tech giants and a possible violation of existing trade obligations under the North American trade framework.

The tax, originally announced in 2020, was designed to ensure that large multinational technology companies generating significant revenue from Canadian users contribute their fair share to the country’s economy. Specifically, it proposed a 3% tax on digital services revenues exceeding $20 million annually, retroactive to 2022. Had it been implemented, the measure would have impacted major U.S.-based firms such as Amazon, Meta, Alphabet’s Google, and Apple.

In recent weeks, the tension surrounding the DST had reached a critical level. Former U.S. President Donald Trump, who had already paused trade discussions on Friday in response to the proposed tax, did not hold back in his criticism.

“This was a blatant attack on American innovation,” Trump stated, accusing Canada of undermining the principles of free trade. “If this tax went forward, there would have been no deal — not now, not ever.”

Adding to the pressure, Trump declared on Sunday that unless Canada immediately reversed its stance, he would impose a new round of tariffs on Canadian exports within the week — a move that risked plunging bilateral relations into turmoil after a period of relative calm.

Responding to the change, U.S. Commerce Secretary Howard Lutnick posted a reaction on X (formerly Twitter), expressing his satisfaction with Canada’s decision.

“Thank you Canada for removing your Digital Services Tax, which was intended to stifle American innovation and would have been a deal breaker for any trade deal with America,” Lutnick wrote.

The policy retreat was also framed by Canadian officials as a practical decision grounded in the broader goal of achieving an international solution. Finance Minister François-Philippe Champagne confirmed that legislation would soon be introduced to repeal the Digital Services Tax Act entirely.

“The DST was originally introduced to address the fact that many large technology companies operating in Canada may not otherwise pay tax on revenues generated from Canadians,” Champagne said in the statement. “However, Canada’s preference has always been a multilateral agreement related to digital services taxation.”

Analysts suggest that while Canada’s DST had noble intentions rooted in tax equity and digital sovereignty, the political cost of maintaining the policy proved too high in the face of U.S. opposition. The United States, after all, remains Canada’s largest trading partner in goods and services — and the stakes of the ongoing negotiations could not be higher.

According to U.S. Census Bureau data, Canada bought $349.4 billion worth of American goods last year and exported $412.7 billion to the U.S., highlighting the deeply intertwined economic relationship between the two nations. Though Canada had managed to escape broad tariffs imposed earlier in April, it still faces steep 50% duties on its steel and aluminum exports to the American market — a point of contention that continues to simmer in the background.

The Biden administration, too, had previously flagged the DST as problematic, formally requesting trade dispute consultations earlier this year. U.S. officials argued that the tax was inconsistent with Canada’s obligations under the USMCA (United States-Mexico-Canada Agreement), formerly known as NAFTA.

This latest development comes after Carney and Trump met at the G7 summit earlier in the month, where both leaders reportedly agreed to wrap up a new economic agreement within 30 days. Though the meeting had been seen as a signal of cooperation, tensions flared almost immediately afterward when details of Canada’s DST surfaced again.

Now, with the DST effectively shelved and legislation to repeal it on the horizon, diplomatic space has opened once more for constructive dialogue. Wall Street responded positively to the news, with futures reaching record highs Monday morning. The market reaction reflects investor optimism that the renewed talks between the U.S. and Canada could lead to a smoother economic path ahead.

While the final shape of the upcoming trade deal remains unclear, the removal of the DST marks a significant reset in U.S.-Canada relations — one that could determine the contours of North American commerce for years to come.

Canada’s decision to withdraw its Digital Services Tax marks a pivotal shift in its trade diplomacy with the United States. By stepping back from a measure that risked igniting tariff retaliation and diplomatic discord, Canada has chosen negotiation over confrontation. As both nations now return to the table with renewed urgency, the coming weeks will determine whether this tactical retreat fosters a stable trade framework—or merely postpones deeper conflict. For now, the halted tax offers a fragile but welcome pause, opening the door to economic compromise in a high-stakes cross-border relationship.

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