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

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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Figma Ignites Wall Street with Record-Smashing IPO Debut

🔎 STORY HIGHLIGHTS

IPO Price: $33 per share
Expected Opening Price: $95–$100 (Up to 203% surge)
IPO Volume: $1.2 billion raised
Valuation: $16.1B (Market), $19B+ (Fully diluted)
Subscription: 40x Oversubscribed
NYSE Ticker: FIG
Q1 Revenue: $228 million | Net Income: $44.9 million
2024 Net Loss: $732 million
CEO Control: 74.1% voting power through Class B shares

In one of the most closely watched U.S. tech listings of the year, Figma Inc. has made a stunning entrance into public markets. The design and collaboration platform—widely adopted by designers and increasingly embraced by developers and business teams—saw its shares indicated to open between $95 and $100, a leap of up to 203% from its initial public offering price of $33.

After months of speculation and investor buzz, the numbers spoke loudest. Figma raised $1.2 billion in the offering, selling 12.47 million shares, while early backers including Index Ventures, Greylock Partners, and Kleiner Perkins offloaded 24.46 million shares. That move catapulted the company’s market valuation to $16.1 billion, with a fully diluted value (including stock options and restricted units) approaching $18.5 billion. Factoring in restricted stock units for CEO Dylan Field, the figure climbs even higher, crossing the $19 billion mark.

That valuation quietly overtakes the $20 billion figure Adobe Inc. had once been willing to pay for Figma in a deal that ultimately crumbled under regulatory scrutiny in 2023.

“A Defining Brand Moment”

For Figma’s co-founder and CEO Dylan Field, the IPO isn’t just about capital—it’s a symbolic moment in the company’s journey. Speaking to Bloomberg, Field emphasized that listing publicly allows Figma to spotlight design as a business priority.

“This is a time where we can create tremendous value for our community, our customers,” Field said. “And I think the public market is the right place to do it.”

Field, who famously left Brown University midway through to pursue the venture after receiving a Thiel Fellowship, has long championed the idea that good design belongs at the center of software development, not the sidelines. The public debut, in his view, is an extension of that philosophy.

“No Time to Slow Down”

Despite the euphoria of its Wall Street welcome, Field made it clear that going public should not become a distraction. The company, he said, must remain focused and fast-moving.

“We have to continue to sprint, to push hard,” he said. “We can’t let the public markets distract us.”

That urgency may be well-founded. Figma’s rise has coincided with a wider industry push toward browser-based, AI-powered tools. In 2023, the company introduced Dev Mode, which enhances collaboration between designers and developers. More recently, it launched Figma Make, a product that uses artificial intelligence to generate working design prototypes based on text prompts.

An Unmatched Demand Curve

What makes Figma’s IPO more remarkable is the scale of investor appetite. According to Bloomberg, the offering was more than 40 times oversubscribed. Over half of the orders placed ended up receiving no allocation at all. The process reportedly mirrored an auction-style system, where investors were required to specify both price and quantity.

This overwhelming demand, experts suggest, may have stemmed from pent-up interest in growth-oriented software companies after a cautious 2023. Figma becomes the first significant software IPO since SailPoint Technologies earlier this year.

“Profitability Sets It Apart”

While many young software companies struggle with profitability, Figma appears to have found balance. According to Bloomberg Intelligence, the firm boasts an adjusted gross margin of approximately 92%, exceeding several larger, more established competitors.

“Figma’s profitability gives it ample flexibility to invest in new products and markets,” wrote Bloomberg analysts Anurag Rana and Andrew Girard.

That balance, however, remains delicate. In Q1, the company posted $228 million in revenue and $44.9 million in net income. Yet for full-year 2024, rising expenses drove a net loss of $732 million. These figures illustrate the classic tech conundrum—scaling while staying profitable.

“Broader Horizons Beyond Design”

The company’s future growth may lie in its ability to serve a broader segment of the professional workforce. Figma has made strides in adoption among software developers, product managers, and even marketers—groups far removed from its original design-centric core.

Andrew Reed, a partner at Sequoia Capital and board member at Figma, noted that enterprise adoption began to surge around 2019, when Sequoia first invested.

“We saw companies across industries begin to embrace Figma’s product en masse,” Reed said.

The challenge now is maintaining that momentum in a field that’s growing more competitive by the day.

Facing the AI Competition

Figma is not without challengers. AI-powered design platforms such as Lovable and Bolt have been gaining traction. Field acknowledged the urgency to weave artificial intelligence throughout Figma’s product offerings.

“We have so much room to explore how we can make great AI products and experiences,” he said.

In a separate interview with Bloomberg TV, Field reiterated a pledge from his IPO founder letter: Figma intends to pursue mergers and acquisitions at scale. But any potential acquisition, he noted, must align with the company’s cultural and product DNA.

“It has to be an amazing team, an amazing asset,” he said. “And it has to be something where we think the team is culturally consistent.”

IPOs Pick Up Pace

Figma’s listing is part of a larger trend. The volume of U.S. IPOs in 2025 has now crossed $21 billion—exceeding the pace of the previous year. That total excludes blank-check companies and reflects a renewed investor appetite for growth stories.

Led by banking giants Morgan Stanley, Goldman Sachs, JPMorgan Chase, and Allen & Co., Figma’s IPO marks a key milestone not just for the company, but for the broader tech market.

Now trading under the ticker FIG on the New York Stock Exchange, Figma’s journey from a university dropout’s vision to a global design giant has entered a new and highly public phase. Whether it remains a design darling or becomes a workplace essential for all, the market will decide—and soon.

Figma’s entry into the public market marks more than just a financial milestone—it reflects the rising value of design, collaboration, and AI-driven innovation in modern business. With overwhelming investor demand, a sharp surge in share value, and a clear roadmap for expansion, the company steps into its next phase with momentum and visibility. As Figma navigates the pressures of public scrutiny and competition, its ability to balance creative excellence with scalable growth will determine whether this IPO is merely a strong debut—or the start of something much larger.

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

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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