Wall St selloff sparked by Trump tariffs
Wall St plunged after President Donald Trump announced a slew of steep new tariffs. (EPA PHOTO) Credit: AAP
Wall Street's main indexes declined sharply as new US tariffs on dozens of trading partners and Amazon's unimpressive earnings weighed on sentiment, while a weaker payrolls report added to risk aversion.
Hours ahead of the tariff deadline, President Donald Trump signed an executive order on Friday imposing duties on US imports from countries including Canada, Brazil, India and Taiwan.
Data showed US job growth slowed more than expected in July while the prior month's data was revised sharply lower, pointing to a sharp moderation in the labour market.
"This was a pretty disappointing report ... markets are getting a little bit more worried about the state of the labour market in the aftermath of today's report," said BeiChen Lin, senior investment strategist at Russell Investments.
Following the data, traders have raised their bets for a September interest rate cut to 81.9 per cent, according to CME's FedWatch tool.
In early trading on Friday, the Dow Jones Industrial Average fell 633.77 points, or 1.44 per cent, to 43,491.55, the S&P 500 lost 107.59 points, or 1.70 per cent, to 6,231.80 and the Nasdaq Composite lost 483.70 points, or 2.29 per cent, to 20,638.74.
The S&P 500 and the Nasdaq fell to a more than two-month low each, while the Dow slipped to an over one-month low.
The CBOE Volatility index, also known as Wall Street's fear gauge, jumped to a near six-week high and was last up 20.66 points.
Eight of the 11 S&P 500 sector indexes declined, led by consumer discretionary, which was down 3.4 per cent as
Amazon slid 6.7 per cent. The company's growth in its cloud computing unit failed to impress investors, in contrast to robust gains reported by AI-focused rivals Alphabet and Microsoft.
Technology and communication services indexes fell 1.9 per cent and 1.5 per cent, respectively.
Apple posted its current-quarter revenue forecast well above Wall Street estimates, but CEO Tim Cook warned US tariffs would add $US1.1 billion ($A1.7 billion) in costs over the period. The stock edged 0.2 per cent lower.
Most major megacap stocks fell, with Nvidia down 3.1 per cent, Tesla falling 2.6 per cent, Meta Platforms down 2.5 per cent, and Alphabet losing 1.4 per cent.
Financials fell 2.2 per cent, with Coinbase Global falling 16.2 per cent after the crypto exchange reported a drop in adjusted profit for the second quarter.
Industrial tools supplier WW Grainger dropped 9.2 per cent after slashing its forecast for annual profit.
Trump said on Friday the Federal Reserve's board should assume control if the central bank's chair, Jerome Powell, continues to refuse to lower interest rates.
Powell, despite pressure from Trump to cut rates, has indicated the central bank was in no rush to do so.
The day's sharp losses put the S&P 500 and the Nasdaq on track for weekly losses, offsetting the week's earlier gains on signs of economic resilience, AI boost, and key US trade agreements with top partners such as the European Union and South Korea.
Declining issues outnumbered advancers by a 2.93-to-1 ratio on the NYSE, and by a 4.43-to-1 ratio on the Nasdaq.
The S&P 500 posted six new 52-week highs and 18 new lows, while the Nasdaq Composite recorded 8 new highs and 131 new lows.
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The Advertiser
2 hours ago
- The Advertiser
Trump fires jobs data commissioner after dismal report
US President Donald Trump has removed the head of the agency that produces the monthly jobs figures after a report showed hiring slowed in July and was much weaker in May and June than previously reported. Trump, in a post on his social media platform on Friday, alleged the figures were manipulated for political reasons and said that Erika McEntarfer, the director of the Bureau of Labor Statistics, who was appointed by former president Joe Biden, should be fired. He provided no evidence for the charge. "I have directed my Team to fire this Biden Political Appointee, IMMEDIATELY," Trump said on Truth Social. "She will be replaced with someone much more competent and qualified." After his post, Labour Secretary Lori Chavez-DeRemer said on X that McEntarfer was no longer leading the bureau and that William Wiatrowski, the deputy commissioner, would serve as the acting director. "I support the president's decision to replace Biden's commissioner and ensure the American people can trust the important and influential data coming from BLS," Chavez-DeRemer said. Friday's jobs report showed that just 73,000 jobs were added in July and that 258,000 fewer jobs were created in May and June than previously estimated. McEntarfer was nominated by Biden in 2023 and became the Commissioner of the Bureau of Labor Statistics in January 2024. Commissioners typically serve four-year terms but since they are political appointees can be fired. The commissioner is the only political appointee of the agency, which has hundreds of career civil servants. Trump focused much of his ire on the revisions the agency made to previous hiring data. Job gains in May were revised down to just 19,000 from 125,000, and for June they were cut to 14,000 from 147,000. In July, only 73,000 positions were added. The unemployment rate ticked up to a still-low 4.2 per cent from 4.1 per cent. "No one can be that wrong? We need accurate Jobs Numbers," Trump wrote. "She will be replaced with someone much more competent and qualified. Important numbers like this must be fair and accurate, they can't be manipulated for political purposes." The monthly employment report is one of the most closely-watched pieces of government economic data and can cause sharp swings in financial markets. The disappointing figure sent US market indexes about 1.5 per cent lower Friday. While the jobs numbers are often the subject of political spin, economists and Wall Street investors — with millions of dollars at stake — have always accepted US government economic data as free from political manipulation. US President Donald Trump has removed the head of the agency that produces the monthly jobs figures after a report showed hiring slowed in July and was much weaker in May and June than previously reported. Trump, in a post on his social media platform on Friday, alleged the figures were manipulated for political reasons and said that Erika McEntarfer, the director of the Bureau of Labor Statistics, who was appointed by former president Joe Biden, should be fired. He provided no evidence for the charge. "I have directed my Team to fire this Biden Political Appointee, IMMEDIATELY," Trump said on Truth Social. "She will be replaced with someone much more competent and qualified." After his post, Labour Secretary Lori Chavez-DeRemer said on X that McEntarfer was no longer leading the bureau and that William Wiatrowski, the deputy commissioner, would serve as the acting director. "I support the president's decision to replace Biden's commissioner and ensure the American people can trust the important and influential data coming from BLS," Chavez-DeRemer said. Friday's jobs report showed that just 73,000 jobs were added in July and that 258,000 fewer jobs were created in May and June than previously estimated. McEntarfer was nominated by Biden in 2023 and became the Commissioner of the Bureau of Labor Statistics in January 2024. Commissioners typically serve four-year terms but since they are political appointees can be fired. The commissioner is the only political appointee of the agency, which has hundreds of career civil servants. Trump focused much of his ire on the revisions the agency made to previous hiring data. Job gains in May were revised down to just 19,000 from 125,000, and for June they were cut to 14,000 from 147,000. In July, only 73,000 positions were added. The unemployment rate ticked up to a still-low 4.2 per cent from 4.1 per cent. "No one can be that wrong? We need accurate Jobs Numbers," Trump wrote. "She will be replaced with someone much more competent and qualified. Important numbers like this must be fair and accurate, they can't be manipulated for political purposes." The monthly employment report is one of the most closely-watched pieces of government economic data and can cause sharp swings in financial markets. The disappointing figure sent US market indexes about 1.5 per cent lower Friday. While the jobs numbers are often the subject of political spin, economists and Wall Street investors — with millions of dollars at stake — have always accepted US government economic data as free from political manipulation. US President Donald Trump has removed the head of the agency that produces the monthly jobs figures after a report showed hiring slowed in July and was much weaker in May and June than previously reported. Trump, in a post on his social media platform on Friday, alleged the figures were manipulated for political reasons and said that Erika McEntarfer, the director of the Bureau of Labor Statistics, who was appointed by former president Joe Biden, should be fired. He provided no evidence for the charge. "I have directed my Team to fire this Biden Political Appointee, IMMEDIATELY," Trump said on Truth Social. "She will be replaced with someone much more competent and qualified." After his post, Labour Secretary Lori Chavez-DeRemer said on X that McEntarfer was no longer leading the bureau and that William Wiatrowski, the deputy commissioner, would serve as the acting director. "I support the president's decision to replace Biden's commissioner and ensure the American people can trust the important and influential data coming from BLS," Chavez-DeRemer said. Friday's jobs report showed that just 73,000 jobs were added in July and that 258,000 fewer jobs were created in May and June than previously estimated. McEntarfer was nominated by Biden in 2023 and became the Commissioner of the Bureau of Labor Statistics in January 2024. Commissioners typically serve four-year terms but since they are political appointees can be fired. The commissioner is the only political appointee of the agency, which has hundreds of career civil servants. Trump focused much of his ire on the revisions the agency made to previous hiring data. Job gains in May were revised down to just 19,000 from 125,000, and for June they were cut to 14,000 from 147,000. In July, only 73,000 positions were added. The unemployment rate ticked up to a still-low 4.2 per cent from 4.1 per cent. "No one can be that wrong? We need accurate Jobs Numbers," Trump wrote. "She will be replaced with someone much more competent and qualified. Important numbers like this must be fair and accurate, they can't be manipulated for political purposes." The monthly employment report is one of the most closely-watched pieces of government economic data and can cause sharp swings in financial markets. The disappointing figure sent US market indexes about 1.5 per cent lower Friday. While the jobs numbers are often the subject of political spin, economists and Wall Street investors — with millions of dollars at stake — have always accepted US government economic data as free from political manipulation. US President Donald Trump has removed the head of the agency that produces the monthly jobs figures after a report showed hiring slowed in July and was much weaker in May and June than previously reported. Trump, in a post on his social media platform on Friday, alleged the figures were manipulated for political reasons and said that Erika McEntarfer, the director of the Bureau of Labor Statistics, who was appointed by former president Joe Biden, should be fired. He provided no evidence for the charge. "I have directed my Team to fire this Biden Political Appointee, IMMEDIATELY," Trump said on Truth Social. "She will be replaced with someone much more competent and qualified." After his post, Labour Secretary Lori Chavez-DeRemer said on X that McEntarfer was no longer leading the bureau and that William Wiatrowski, the deputy commissioner, would serve as the acting director. "I support the president's decision to replace Biden's commissioner and ensure the American people can trust the important and influential data coming from BLS," Chavez-DeRemer said. Friday's jobs report showed that just 73,000 jobs were added in July and that 258,000 fewer jobs were created in May and June than previously estimated. McEntarfer was nominated by Biden in 2023 and became the Commissioner of the Bureau of Labor Statistics in January 2024. Commissioners typically serve four-year terms but since they are political appointees can be fired. The commissioner is the only political appointee of the agency, which has hundreds of career civil servants. Trump focused much of his ire on the revisions the agency made to previous hiring data. Job gains in May were revised down to just 19,000 from 125,000, and for June they were cut to 14,000 from 147,000. In July, only 73,000 positions were added. The unemployment rate ticked up to a still-low 4.2 per cent from 4.1 per cent. "No one can be that wrong? We need accurate Jobs Numbers," Trump wrote. "She will be replaced with someone much more competent and qualified. Important numbers like this must be fair and accurate, they can't be manipulated for political purposes." The monthly employment report is one of the most closely-watched pieces of government economic data and can cause sharp swings in financial markets. The disappointing figure sent US market indexes about 1.5 per cent lower Friday. While the jobs numbers are often the subject of political spin, economists and Wall Street investors — with millions of dollars at stake — have always accepted US government economic data as free from political manipulation.
SBS Australia
2 hours ago
- SBS Australia
Dozens of countries hit in Trump tariff blitz
Listen to Australian and world news, and follow trending topics with SBS News Podcasts . The U-S President has announced steep tariffs for 92 nations, including Canada at 35 per cent, and India at 25 per cent. President Donald Trump says the hikes target nations that failed to engage with U-S economic and security interests. But Australian goods will stay at the 10 per cent baseline. Trade Minister Don Farrell says Australian goods are now more competitive in the U-S market, after Donald Trump's latest tariffs announcement. Australia has been spared from an increase in tariffs and the rate remains at the lowest level of 10 per cent. Mr Farrell says that outcome is good for Australia. "What this decision means in conjunction with all the other changes to other countries is that Australian products are now more competitive into the American market. This means products like wine, like beef, like lamb, like wheat, are cheaper into the United States." New Zealand faces a 15 per cent rate, and Canada up to 35 per cent on items outside the US-Mexico-Canada agreement. The White House cited non-tariff barriers and fentanyl trafficking, though Canada accounts for just one per cent of US fentanyl imports. Ottawa says it's boosting border security and fighting transnational crime. Canberra's recent easing of restrictions on American beef is denied as being linked to the decision. Switzerland faces the highest tariff increase, up to 39 per cent. Jean-Philippe Kohl from Swissmem says tens of thousands of tech jobs are now at risk. 'It is really, it was a shock for us, and it is a shock for our export industry and the whole country. We are really stunned. And the tariffs are not based on any rational basis and are arbitrary, and it is impossible to explain what it means and why this decision is made so. So, there is no rationality.' Swiss pharmaceutical giants Roche and Novartis were spared, but broader economic impacts are expected to be severe. The Swiss government is reviewing its response. Meanwhile, Bangladesh has won a key concession, with U-S tariffs on its garment exports cut to 20 per cent, down from a proposed 37 per cent. The decision is a relief for the country's $60 billion [[US$40 billion]] apparel industry, the world's second largest. Factory owner and former trade official Mohiuddin Rubel says the move helps level the playing field. 'Initially when it (Trump's tariff) was imposed, few of our competitors were having lesser tariff than us. So, we were in little bit of a shaky position to fight with them and how to cope up with them in the competition. So, when now it has been revised, all of our competitors almost are in equal stage.' Meanwhile in Taiwan, a 20 per cent tariff has left industries such as machinery and plastics on edge, as companies weigh whether to shift operations. One executive, Mr Wang, warns the impact could ripple across multiple sectors. 'It all depends on the final tariff rate. If it remains 20 percent, it will be a big blow for machine tools manufacturing, machinery and textile industries. And the impact may affect other industries on different levels. As a result, it all depends on the final tariffs rate, what markets Taiwan needs to open for the U.S., what we need to invest in U.S. We won't know the impact until then.' In Malaysia, most pharmaceutical and semiconductor products will be exempt despite a new 19 per cent tariff on other exports. Trade Minister Tengku Zafrul Aziz says the decision followed high-level talks. "In the end, at 5am we finished the discussion in the morning and Prime Minister Anwar Ibrahim briefed us that President Trump has agreed with the tariffs for Malaysia, which is 19 per cent, announced along with other countries. This will be followed by a joint statement by the Malaysia and US side, including the Malaysia Ministry of International Trade and Industry (MITI) and the US Trade Representatives (USTR) either on Saturday or Sunday." South Africa is also bracing for the fallout. Dynamic Fluid Control, a major valve manufacturer, fears the 30 per cent levy on steel could force it out of the U-S market. C-E-O Tumi Tsehlo was blunt. "You know the longer the tariffs stay in place, the longer the situation will continue to disable us." South Africans voiced concern over the potential impact of a 30 per cent tariff imposed by President Trump, warning of job losses and economic uncertainty as the measure takes effect. Kalomo Musokotwane is a marketing and events manager. "Thirty per cent is drastic. So a lot of people are going to lose jobs. And already the government is struggling to create more jobs as it is, and I don't see them creating any more jobs again. So it's going to probably be up to the entrepreneurs. Entrepreneurs are going to have to somehow find a way to bring back the economy. But then at the end of the day, a lot of people are going to lose.' Serbia has been hit with a proposed 35 per cent tariff. Bojan Stanic from the Serbian Chamber of Commerce described the move as excessive. "Serbia is among the most affected countries in the world with tariffs, if they really happen - we will have to wait for the official announcement of the officials in Serbia as well. The tariffs are even higher than those applied for Chinese goods coming to America. On the other hand, in Europe only Switzerland is higher with 39%. We can freely say that this is indeed an irrational decision, bearing in mind that in the last ten years, the economic exchange between America and Serbia has significantly increased." In France, perfume maker Corania is reeling from a 15 per cent tariff on its U-S exports. CEO Laurent Cohen says the sudden change has forced the 90-year-old company to rethink its business strategy. 'So this is new, it's forced on us, it's sudden. And so, we, who have been working in this market for many years, we had to turn around, we had to reinvent ourselves. We already had to be cautious because since January, we have no idea what's coming next.'
Perth Now
3 hours ago
- Perth Now
Trump fires jobs data commissioner after dismal report
US President Donald Trump has removed the head of the agency that produces the monthly jobs figures after a report showed hiring slowed in July and was much weaker in May and June than previously reported. Trump, in a post on his social media platform on Friday, alleged the figures were manipulated for political reasons and said that Erika McEntarfer, the director of the Bureau of Labor Statistics, who was appointed by former president Joe Biden, should be fired. He provided no evidence for the charge. "I have directed my Team to fire this Biden Political Appointee, IMMEDIATELY," Trump said on Truth Social. "She will be replaced with someone much more competent and qualified." After his post, Labour Secretary Lori Chavez-DeRemer said on X that McEntarfer was no longer leading the bureau and that William Wiatrowski, the deputy commissioner, would serve as the acting director. "I support the president's decision to replace Biden's commissioner and ensure the American people can trust the important and influential data coming from BLS," Chavez-DeRemer said. Friday's jobs report showed that just 73,000 jobs were added in July and that 258,000 fewer jobs were created in May and June than previously estimated. McEntarfer was nominated by Biden in 2023 and became the Commissioner of the Bureau of Labor Statistics in January 2024. Commissioners typically serve four-year terms but since they are political appointees can be fired. The commissioner is the only political appointee of the agency, which has hundreds of career civil servants. Trump focused much of his ire on the revisions the agency made to previous hiring data. Job gains in May were revised down to just 19,000 from 125,000, and for June they were cut to 14,000 from 147,000. In July, only 73,000 positions were added. The unemployment rate ticked up to a still-low 4.2 per cent from 4.1 per cent. "No one can be that wrong? We need accurate Jobs Numbers," Trump wrote. "She will be replaced with someone much more competent and qualified. Important numbers like this must be fair and accurate, they can't be manipulated for political purposes." The monthly employment report is one of the most closely-watched pieces of government economic data and can cause sharp swings in financial markets. The disappointing figure sent US market indexes about 1.5 per cent lower Friday. While the jobs numbers are often the subject of political spin, economists and Wall Street investors — with millions of dollars at stake — have always accepted US government economic data as free from political manipulation.
