Weak Jobs Report & Trump Tariffs Send U.S. Stocks Plunging, Wiping Out $1.1 Trillion in Value

New York, August 2, 2025 – U.S. stock markets suffered a dramatic selloff yesterday, with analysts estimating that more than $1.1 trillion in market value was erased in a single trading session. The downturn was triggered by disappointing July jobs data and the announcement of sweeping new tariffs from former U.S. President Donald Trump.

Dual Shock to Investor Confidence

The Labor Department’s latest report showed significantly weaker-than-expected job gains, raising concerns about the resilience of the U.S. economy. Almost simultaneously, Trump unveiled new tariffs targeting dozens of countries, sharply increasing trade tensions and sparking fears of slower global growth.

Market strategists said the combination of soft economic data and fresh trade barriers created a “perfect storm” for investors, leading to one of the sharpest one-day losses in recent months.

Markets in Retreat

S&P 500: Fell sharply, dragging most sectors into the red.

Nasdaq Composite: Tech-heavy index posted even steeper losses as investors took profits from high-valuation stocks.

Treasuries: Yields on the 2-year note plunged, signaling traders expect the Federal Reserve may soon cut interest rates.

Volatility Index (VIX): Spiked above 20, reflecting heightened investor anxiety.

The $1.1 Trillion Loss

While the exact figure varies depending on calculation methods, analysts and financial news outlets widely reported that more than $1.1 trillion in market value vanished across U.S. equities. This figure reflects the cumulative drop in valuations from the major indexes, underscoring the scale of the selloff.

Economic and Policy Implications

Recession Fears: Weak jobs data has added weight to the possibility of an economic slowdown.

Trade Concerns: Tariffs could increase input costs for U.S. companies, reduce exports, and dampen corporate earnings.

Fed Watch: Falling bond yields suggest markets are betting on interest rate cuts in the near future.

Looking Ahead

Investors will be closely watching upcoming inflation data and further policy announcements. With summer trading volumes thin, volatility could remain elevated in the weeks ahead.