Dow Falls Over 500 Points on Weak Jobs Data, New Tariffs

U.S. stocks fell sharply at the start of August trading amid disappointing jobs data and renewed trade war concerns linked to President Donald Trump's new tariffs. The Dow Jones Industrial Average dropped about 500 points, with the S&P 500 and Nasdaq also declining substantially, driven by weaker-than-expected July job growth of 73,000 and downward revisions to prior months. The White House implemented steep new tariffs on key trading partners including Canada and India, raising fears of escalating economic friction. Market reaction was also influenced by disappointing earnings from Amazon, contrasting with gains from other tech giants like Apple, Google, and Microsoft. Investors now widely anticipate that the Federal Reserve will cut interest rates in September in response to the weakening labor market and economic uncertainty. Defensive sectors like healthcare outperformed while financials, consumer discretionary, and tech sectors were notably weak in this environment.