More last-minute modifications to tariff rates and a disappointing July jobs report weighed heavily on investors on Friday.
Nonfarm payrolls were up by 73,000 last month, which was far less than the 100,000 economists were expecting. In addition, the Labor Department revised previous months downward, saying June job growth, which was previously reported at 147,000, was actually just 14,000. May’s count was also changed from 144,000 to 19,000.
That indicated the job market has been weak for quite a while now, something many Americans suspected, despite the bullish jobs numbers. The only possible bright side to that is it could give the Federal Reserve a reason to cut interest rates sooner than expected.
Macquarie strategists Thierry Wizman and Gareth Berry, in a note to investors, wrote trading at the start of the month was beginning “with a bit of panic.”
Amidst all this, Trump resumed his public criticisms of Fed chair Jerome Powell, seemingly encouraging the Fed Board to launch a coup.
“Jerome ‘Too Late’ Powell, a stubborn MORON, must substantially lower interest rates, NOW,” Trump wrote. “IF HE CONTINUES TO REFUSE, THE BOARD SHOULD ASSUME CONTROL, AND DO WHAT EVERYONE KNOWS HAS TO BE DONE!”
The weak market open comes after three consecutive days of losses for the S&P 500. So far this year, the S&P 500 has increased 6.6%. The Dow is up 2.45% and the Nasdaq has rallied 6.9%.
