Wall Street slumps on Trump tariff news and weak US job data
Markets are also reacting to the latest tariff news. US 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 on August 7 for countries that have yet to make a deal with the US.
The S&P 500 fell 1.2 per cent. The decline marks a sharp shift for the index, which has not fallen by more than 1 per cent since June. It is also on track for a weekly loss following last week's record-setting streak.
The Dow Jones Industrial Average fell 451 points, or 1 per cent as of 12.01pm. The Nasdaq composite fell 1.6 per cent.
Worries on Wall Street about a weakening economy were heavily reinforced by the latest report on job growth in the US. Employers added just 73,000 jobs in July. That is sharply lower than economists expected. The US Labour Department also reported that revisions shaved a stunning 258,000 jobs off May and June payrolls.
The surprisingly weak hiring numbers led investors to step up their expectations for an interest-rate cut in September.
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