Key Takeaways:
- Trump’s tariffs on over 50 countries marked a major shift in U.S. trade policy, triggering broad market losses.
- U.S. job growth slowed sharply in July, with payrolls rising by just 73,000 and falling short of expectations.
- Bitcoin dropped to around $112,000 before rebounding to $114,500 as investors weighed rising macro risks.
- Gold steadied near $3,360 as investors moved into safe-haven assets to hedge against rising economic uncertainty.
- WTI crude slipped to $67.18 after OPEC+ announced a 547,000 bpd production increase for September.
Markets tumbled over the weekend after President Trump’s sweeping tariffs on more than 50 countries, combined with a weak jobs report, triggered a sharper-than-expected reaction from investors, unleashing heavy waves of selling across global markets.
On August 1, the Trump administration announced its most far-reaching tariff expansion in decades, marking a sharp turn away from globalization and toward economic nationalism. The new framework replaces longstanding U.S. trade policy with a system aimed at shielding domestic industries and curbing trade deficits.
Under the updated framework, countries with balanced trade relationships will continue facing a 10% duty. However, 26 nations, including India, Vietnam, and Switzerland, will be subject to sharply higher tariffs ranging from 19% to over 40%, depending on the scale of their trade imbalances with the U.S.
Additionally, despite being part of the USMCA free-trade framework, both Mexico and Canada are also affected. Canada’s non-exempted exports will now face a 35% tariff, up from 25%, while Mexico secured a 90-day extension on its existing 25% rate.
Adding to the uncertainty, a disappointing U.S. jobs report followed President Trump’s tariffs, with July payrolls rising by only 73,000, falling far below expectations and further weighing on investor sentiment.
Meanwhile, oil prices came under pressure after OPEC+ announced it would raise output by 547,000 barrels per day for September. The decision weighed on oil markets, with WTI crude easing 0.1% to $67.18 and Brent crude tumbling 3.68% to $88.16, as traders weighed the impact of increased supply amid a fragile demand outlook.
Market reaction was swift and critical, with the S&P 500 dropping 1.6% to 6,238.01, the Dow Jones falling 1.23% to 43,588.58, and Bitcoin dipping to around $112,000 before rebounding to $114,500.
On the other hand, gold surged and stabilized around $3,360, as investors turned to safe havens as a hedge against market turbulence.
Global Indices
- S&P 500: 6,238.01 ▼ 1.6%
- Dow Jones Industrial Average: 43,588.58 ▼ 1.23%
- Nasdaq Composite: 20,650.13 ▼ 2.24%
- Nikkei 225 Futures: 40,200.00 ▼ 1.62%
- Euronext 100: 1,541.39 ▼ 2.58%
- FTSE 100: 9,103.60 ▲ 0.02%
Cryptocurrencies
- Bitcoin (BTC): $114,362 ▲ 0.12% (after dipping to $112,000)
- Ethereum (ETH): $3,539.12 ▲ 1.21%
- Binance Coin (BNB): $754.18 ▲ 0.4%
- Solana (SOL): $162.32 ▲ 0.22%
- Notcoin (NOT): $0.00216757 ▼ 0.86%
Commodities
- Gold: $3,360.58 ▼ 0.06%
- Silver: $37.11 ▲ 0.24%
- WTI Crude: $67.18 ▼ 0.1%
- Brent Crude: $88.16 ▼ 3.68%
Major Stocks
- Amazon (AMZN): $214.75 ▼ 8.27%
- Meta (META): $750.01 ▼ 3.03%
- Apple (AAPL): $202.38 ▼ 2.5%
- NVIDIA (NVDA): $173.72 ▼ 2.33%
- Tesla (TSLA): $302.63 ▼ 1.83%
- Microsoft (MSFT): $524.11 ▼ 1.76%
Forex
- U.S. Dollar Index (DXY): 98.769 ▲ 0.09%
- EUR/USD: 1.1575 ▼ 0.08%
- GBP/USD: 1.3279 ▲ 0.04%
- USD/JPY: 147.70 ▲ 0.22%
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