US close: Stocks sink sharply on Trump tariffs, weak data
By Benjamin Chiou
Date: Friday 01 Aug 2025
(Sharecast News) - A barrage of weak economic data and the announcement of a whole new set of US import tariffs weighed heavily on Wall Street on Friday, with stocks finishing the week with heavy losses.
The Dow dropped 1.2% to 43,588.58, its lowest finish since 26 June; the S&P 500 fell 1.6% to 6,238.01, its lowest since 8 July; while the Nasdaq sank 2.2% to 20,650.13, its lowest since 14 July.
Donald Trump announced updated duties ranging from 10% to 41% for products imported from countries that have not yet made a trade deal with America. The fresh wave of "reciprocal" tariffs are set to take effect next Thursday, with the delay (from the well-flagged 1 August deadline) intended to give Customs and Border Protection time to implement changes and not to extend negotiations.
The US president said he remained open to "more compelling offers" but insisted it was "too late" for countries to avoid the incoming tariffs and declared that the 1 August deadline "stands strong" in what he called a "big day for America".
Syria, the hardest hit nation, now faces a 41% tariff, while Laos and Myanmar will see import duties of 40%. Switzerland and South Africa were subject to 39% and 30% tariff rates, respectively. Countries not listed in the latest order will face an additional duty of 10%. Trading partners that have yet to reach or are near reaching agreements with the US will be subject to the modified rates until those agreements are concluded, according to the executive order.
"Given how markets had been trading this morning after the tariff news, it would have taken a very solid payroll report to avoid further losses. As it was, today's dismal number did nothing for sentiment," said Chris Beauchamp, chief market analyst at IG.
Economic data barrage
The Bureau of Labor Statistics revealed that non-farm payrolls rose by just 73,000 in July, well below expectations of 110,000. Revisions to May and June's figures also pointed to a significantly weaker picture than previously reported, with May's job growth slashed by 125,000 to just 19,000, while June was cut by 133,000 to 14,000 - leaving employment 258,000 lower than initially thought.
The revisions likely reinforced the Federal Reserve's view that it should remain cautious for the time being when it comes to monetary policy, with signs of labour market softening emerging beneath headline stability.
"What really drove the gloomy mood this afternoon was the substantial set of revisions to recent months data. After days spent worrying about the impact of tariffs on prices, the fear is now that hiring is poised to collapse," Beauchamp said.
In other economic data, the ISM's US manufacturing PMI fell 1 point to 48 from June compared with expectations of a rise to 49.5, pointing to a sector that has contracted for the fifth straight month. The S&P Global's own manufacturing PMI fell to 49.8 from 52.9 in June, its first reading below 50 in seven months.
The University of Michigan's index of consumer sentiment rose just one point to 61.7 in July, up from 60.7 in June though marginally below the preliminary reading of 61.8 released two weeks ago. This was the highest since February, though the the University's consumer surveys director Joanne Hsu noted: "Although recent trends show sentiment moving in a favourable direction, sentiment remains broadly negative."
Lastly, US construction spending edged 0.4% lower in June, according to the Census Bureau, with declines in private construction offsetting a modest increase in public project spending.
Market movers
Online retail giant Amazon tanked 8% after delivering light operating income guidance for the current quarter, targeting operating income of $15.5bn-20.5bn, with the midpoint well below the $19.5bn consensus forecast.
Tech giant Apple traded higher early on on the back of a quarterly earnings and revenue beat, though the stock fell 2.5% by the close. Despite recording its fastest quarterly revenue growth in three and a half years (10%), the stock dropped in line with the broader tech sell-off.
Vaccine manufacturer Moderna was also falling sharply, down 7% after cutting the top end of its annual revenue forecast range by $300m, despite topping analysts' estimates with its second-quarter sales.
Consumer products giant Colgate-Palmolive beat analysts' estimates with improved second-quarter results, though the stock flatlined after the company delivered a cautious outlook and announced a new restructuring programme that will cost the company between $200m and $300m.
Dow Jones - Risers
Home Depot Inc. (HD) $373.66 1.67%
Johnson & Johnson (JNJ) $167.28 1.57%
Merck & Co. Inc. (MRK) $79.27 1.50%
Coca-Cola Co. (KO) $68.86 1.43%
McDonald's Corp. (MCD) $302.76 0.94%
Amgen Inc. (AMGN) $296.88 0.60%
Walmart Inc. (WMT) $98.49 0.52%
Verizon Communications Inc. (VZ) $42.88 0.28%
Procter & Gamble Co. (PG) $150.65 0.12%
Boeing Co. (BA) $221.90 0.03%
Dow Jones - Fallers
Dow Chemical Co. (DOW) $21.79 -6.44%
Unitedhealth Group Inc. (UNH) $237.77 -4.72%
3M Co. (MMM) $144.29 -3.22%
Salesforce.Com Inc. (CRM) $250.74 -2.94%
Apple Inc. (AAPL) $202.38 -2.50%
JP Morgan Chase & Co. (JPM) $289.37 -2.32%
Caterpillar Inc. (CAT) $428.89 -2.13%
Walt Disney Co. (DIS) $116.59 -2.12%
Goldman Sachs Group Inc. (GS) $709.57 -1.94%
Visa Inc. (V) $339.35 -1.77%
S&P 500 - Risers
Nektar Therapeutics (NKTR) $22.96 5.90%
Align Technology Inc. (ALGN) $136.52 5.82%
D. R. Horton Inc. (DHI) $150.30 5.22%
Amer Water Works (AWK) $145.80 3.91%
Sherwin-Williams Co. (SHW) $344.04 3.79%
Extra Space Storage (EXR) $139.30 3.68%
Dollar General Corp (DG) $108.60 3.46%
PulteGroup Inc. (PHM) $116.75 3.39%
Lennar Corp. Class A (LEN) $115.98 3.39%
Dominion Energy Inc. (D) $60.41 3.35%
S&P 500 - Fallers
Fluor Corp. (FLR) $41.42 -27.04%
Eastman Chemical Co. (EMN) $58.79 -19.03%
CenturyLink Inc. (LUMN) $3.71 -16.63%
Leggett & Platt Inc. (LEG) $8.10 -15.39%
W.W. Grainger Inc. (GWW) $932.01 -10.30%
Illumina Inc. (ILMN) $94.66 -7.84%
LyondellBasell Industries (LYB) $53.42 -7.79%
TripAdvisor Inc. (TRIP) $16.21 -7.32%
Celanese Corp. (CE) $48.55 -7.05%
Bread Financial Holdings, Inc. (BFH) $57.47 -6.10%
Nasdaq 100 - Risers
Align Technology Inc. (ALGN) $136.52 5.82%
Liberty Global plc Series A (LBTYA) $10.54 5.19%
Liberty Global plc Series C (LBTYK) $10.74 4.99%
Biogen Inc (BIIB) $131.95 3.09%
Electronic Arts Inc. (EA) $157.08 3.01%
Regeneron Pharmaceuticals Inc. (REGN) $558.87 2.46%
Lam Research Corp. (LRCX) $96.37 1.61%
Vodafone Group Plc ADS (VOD) $10.96 1.39%
Costco Wholesale Corp. (COST) $952.52 1.37%
Check Point Software Technologies Ltd. (CHKP) $188.58 1.28%
Nasdaq 100 - Fallers
Qvc Group Inc Series A (QVCGA) $3.42 -11.86%
Illumina Inc. (ILMN) $94.66 -7.84%
American Airlines Group (AAL) $11.03 -4.00%
Micron Technology Inc. (MU) $104.88 -3.90%
Paychex Inc. (PAYX) $139.34 -3.46%
Marriott International - Class A (MAR) $255.35 -3.21%
Workday, Inc. (WDAY) $222.22 -3.12%
J.B. Hunt Transport Services Inc. (JBHT) $139.56 -3.12%
Automatic Data Processing Inc. (ADP) $300.44 -2.93%
Adobe Systems Inc. (ADBE) $347.80 -2.76%
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