Wall Street closes with major losses, Nasdaq hit worst
"The reality of higher tariffs is finally setting in, like getting hit in the face with a 2x4," Art Hogan, chief market strategist at B Riley Wealth told CNN Friday. "Investors had been complacent on tariffs due to the TACO trade but now have to contemplate the reality of a world with higher goods prices, and recalibrate earnings and economic growth expectations."
The weaker jobs market, coupled with the higher prices Americans will have to pay for imported goods, saw traders reassess the prospects of a September rate cut, which now looks almost certain.
"Total nonfarm payroll employment changed little in July (+73,000) and has shown little change since April," the U.S. Bureau of Labor Statistics (BLS) reported Friday. "The unemployment rate, at 4.2 percent, also changed little in July. Employment continued to trend up in health care and in social assistance. Federal government continued to lose jobs."
Key Index Performance
S&P 500 (^GSPC)
6,238.01 (-101.38 points, -1.60 percent)
Volume: 3.571 billion shares
The broad market index suffered its worst daily decline in three weeks, with technology and consumer discretionary sectors leading losses.
Dow Jones Industrial Average (^DJI)
43,588.58 (-542.40 points, -1.23 percent)
Volume: 690.738 million shares
The blue-chip index fell for the third consecutive session as 27 of its 30 components closed in the red.
NASDAQ Composite (^IXIC)
20,650.13 (-472.32 points, -2.24 percent)
Volume: 8.277 billion shares
Tech-heavy Nasdaq bore the brunt of the selloff, dragged down by semiconductor stocks and mega-cap tech underperformance.
Sector Performance
Worst-performing sectors:
Technology (-2.8 percent)
Consumer Discretionary (-2.1 percent)
Communications Services (-1.9 percent)
Only utilities (+0.3 percent) and consumer staples (+0.1 percent) managed modest gains as investors sought defensive positions.
Global Forex Markets Close Friday with U.S. Dollar Under Severe Pressure
Major currency pairs saw major currencies surging against the U.S. dollar after President Trump fired the Commissioner for Statistics, claiming the jobs figures are being manipulated.
Key Forex Rates
EUR/USD (Euro / US dollar)
1.1578 (+1.45 percent)
The euro strengthened significantly against the greenback, marking its biggest single-day gain in three weeks.
USD/JPY (US dollar / Japanese yen)
147.34 (−2.24 percent)
The yen rallied sharply against the dollar
USD/CAD (US dollar / Canadian dollar)
1.3792 (−0.43 percent)
The loonie edged higher against its US counterpart, supported by stabilizing oil prices and stronger Canadian retail sales figures.
GBP/USD (British pound / US dollar)
1.3272 (+0.53 percent)
Sterling rebounded following Trump's explosive attack on the U.S. statistics chief.
USD/CHF (US dollar / Swiss franc)
0.8045 (−0.95 percent)
The Swiss franc outperformed as risk-off sentiment briefly flared during European trading hours.
AUD/USD (Australian dollar / US dollar)
0.6461 (+0.57 percent)
The Australian dollar climbed, interrupting its recent dive.
NZD/USD (New Zealand dollar / US dollar)
0.5913 (+0.43 percent)
The kiwi mirrored regional gains despite mixed signals from New Zealand's latest trade balance data.
Global Markets Close Lower on Friday as Major Indices See Widespread Declines
Global stock markets ended the week on a downbeat note Friday, with most major indices posting losses amid lingering economic concerns. European markets were hit particularly hard, while Asian and Pacific indices also saw broad declines.
Canadian Markets Drop
S&P/TSX Composite (^GSPTSE) closed at 27,020.43 (-239.35 points, -0.88 percent). Volume: 223.876 million shares
UK and European Markets Lead Declines
The FTSE 100 (^FTSE) closed at 9,068.58, down 64.23 points or 0.70 percent, as investors remained cautious ahead of key economic data next week.
Germany's DAX (^GDAXI) suffered a sharp drop, falling 639.50 points or 2.66 percent to 23,425.97, marking one of the worst performances among European benchmarks.
In France the CAC 40 (^FCHI) slid 225.81 points or 2.91 percent to 7,546.16, while the broader Euro Stoxx 50 (^STOXX50E) plunged 227.58 points or 4.22 percent to 5,165.60, its steepest decline in months.
Belgium's BEL 20 (^BFX) lost 70.75 points or 1.53 percent, closing at 4,565.37.
Mixed Performance in Asia and the Pacific
In Asia, the Hong Kong'Hang Seng Index (^HSI) slipped 265.52 points or 1.07 percent to 24,507.81, while Singapore's STI Index (^STI) edged down 19.94 points or 0.48 percent to 4,153.83.
China's Shanghai Composite (000001.SS) slipped 13.26 points or 0.37 percent to 3,559.95, while Japan's Nikkei 225 (^N225) declined 270.22 points or 0.66 percent to 40,799.60.
Taiwan's TWSE Index (^TWII) closed slightly lower, down 108.14 points or 0.46 percent at 23,434.38.
In Australia the S&P/ASX 200 (^AXJO) fell 80.80 points or 0.92 percent to 8,662.00, and the All Ordinaries (^AORD) dropped 81.90 points or 0.91 percent to 8,917.10.
India's S&P BSE Sensex (^BSESN) declined 585.67 points or 0.72 percent to 80,599.91, while in New Zealand the S&P/NZX 50 (^NZ50) lost 94.34 points or 0.74 percent, closing at 12,729.40.
South Korea's KOSPI (^KS11) was among the hardest hit, plunging 126.03 points or 3.88 percent to 3,119.41.
However, some markets bucked the trend. In Indonesia the IDX Composite (^JKSE) rose 53.43 points or 0.71 percent to 7,537.77, and Malaysia's KLSE (^KLSE) gained 20.10 points or 1.33 percent to 1,533.35.
Middle East Markets Shuttered
Most Middle East markets were closed on Friday and wil reopen on Sunday.
South Africa's JSE Top 40 (^JN0U.JO) fell 36.25 points or 0.67 percent to 5,360.37.
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