Markets plunged Friday morning following the release of a dismal jobs report and sharp downward revisions to earlier employment data raising new concerns about the strength of the U.S. economy.
According to fresh numbers from the Labor Department, the U.S. economy added just 73,000 jobs in July, falling far short of the 100,000+ gains economists had expected. The unemployment rate held steady at 4.2 percent, but the overall trend points to a cooling labor market.
In a double blow, job creation figures from May and June were revised down by a staggering 258,000 jobs combined, casting doubt on the supposed momentum heading into summer.
Democrats wasted no time responding. Sen. Chris Murphy (D-Conn.) and California Gov. Gavin Newsom slammed the report as evidence of broader economic mismanagement.
Adding fuel to market anxiety, President Trump on Thursday night slapped higher tariff rates on dozens of countries that have yet to sign trade agreements with the U.S. The new tariffs part of Trump’s “reciprocity agenda” are scheduled to take effect Aug. 7, just hours after previously suspended levies were set to kick in.
In a separate order, Trump also raised Canada’s tariff rate to 35 percent, up from the previously announced 25 percent, citing what he called Ottawa’s failure to curb fentanyl trafficking across the northern border.
Trump is expected to spend the weekend at his Bedminster estate in New Jersey, where he’ll host a MAGA Inc. fundraiser his super PAC’s latest push to shore up support amid economic headwinds and an increasingly restless electorate.
Markets are reacting sharply to the mixed signals, with investors nervously watching for how the White House and Federal Reserve respond in the coming days.