US Jobs Report: New Jobs at 73,000; S&P 500 and NASDAQ Fall; Fed Rate Cut Expected
Key Takeaways
- US added 73,000 jobs in July; unemployment rose to 4.2%, fueling Fed rate cut bets.
- Weak jobs data caused S&P 500 and NASDAQ to fall, increasing likelihood of Fed rate cut.
- U.S. imposed a 20% tariff on goods from Taiwan, effective August 7, 2025.
- Hungary plans action to protect jobs after U.S.-EU trade deal with 15% tariff.
- IMF approved Argentina's review, disbursing $2 billion under Extended Fund Facility.
Top Stories
US jobs report: 73,000 new jobs, unemployment rises to 4.2%.
In August 2025, the U.S. Labor Department reported 73,000 new jobs, below expectations, and the unemployment rate rose to 4.2%. This intensified debate within the Federal Reserve over interest rates, with some officials favoring a rate cut.
S&P 500, NASDAQ fall on weak jobs data; Fed rate cut expected.
On August 1, 2025, the S&P 500 fell 1.7% and the NASDAQ 100 dropped 2% due to weak jobs data, signaling a weakening U.S. labor market and increasing expectations for a September Fed rate cut.
US Treasury yields fall; Fed rate cut likely after weak jobs data.
On August 1, 2025, the U.S. economy added 73,000 jobs in July, below expectations, and the unemployment rate rose to 4.2%, leading to a fall in US Treasury yields and increasing the likelihood of a Federal Reserve rate cut in September.
Fed officials Waller, Bowman dissent on rate freeze amid job concerns.
On August 1, 2025, the July employment report showed only 73,000 jobs added, and Federal Reserve officials Christopher Waller and Michelle Bowman voted against the rate freeze, citing concerns about potential labor market deterioration.
Gold futures surge 1.57% to $3,373.20 after weak jobs data.
On August 1, 2025, gold futures surged after the July U.S. jobs report showed weaker-than-expected job creation, closing up 1.57% at $3,373.20 per troy ounce, increasing the chances of a Federal Reserve rate cut in September to 82.8%.
US labor market wavers; Trump's new tariffs cause Wall Street worry.
On August 2, 2025, reports indicated a wavering US labor market due to an economic slowdown and trade policy uncertainty, with the US adding only 73,000 jobs in July and President Trump unveiling new tariffs.
Weak jobs data increases likelihood of Fed rate cut in September.
On August 1, 2025, US non-farm payrolls increased by 73,000 in July, below expectations, increasing the likelihood of a rate cut by the Federal Reserve in September, with investors assigning a nearly 81% probability to a 25 basis point cut.
Gold prices surge toward $3,350 on weak US jobs data.
On August 1, 2025, gold prices surged due to weaker-than-expected US jobs data, spurring expectations of a Federal Reserve rate cut, climbing toward $3,350.
Gold futures rise over $3,400 on weak U.S. jobs data.
On August 1, 2025, gold futures rose, peaking over $3,400 per troy ounce, driven by weak U.S. jobs data and rate cut expectations.
U.S. imposes 20% tariff on goods from Taiwan.
On August 1, 2025, the U.S. imposed a 20% tariff on goods from Taiwan, effective August 7, 2025, higher than the tariffs imposed on Japan and South Korea.
Hungary plans action to protect jobs after U.S.-EU tariff deal.
Following the U.S.-EU trade agreement, which includes a 15% tariff on EU exports, Hungarian Prime Minister Viktor Orbán announced on August 1, 2025, that Hungary will develop a national action plan to protect domestic jobs and industries.
IMF approves Argentina's review, disburses $2 billion.
The IMF approved Argentina's first review under the Extended Fund Facility, disbursing $2 billion, highlighting progress in transitioning to a flexible exchange rate regime.
Finance Trends
Kugler resigns from Fed; Trump seeks lower interest rate advocate.
Adriana Kugler resigned from the Federal Reserve, giving Donald Trump the chance to nominate a replacement who supports lower interest rates.
Municipal bonds, Treasuries rally after 73,000 jobs added in July.
On August 1, 2025, municipal bonds and US Treasuries rallied following a report of only 73,000 jobs added in July, leading to a fall in the 10-year U.S. Treasury bond yield to 4.22-4.24%.
US Treasuries soar; Fed rate cut in September nearly 90% likely.
On August 1, 2025, US Treasuries soared as job growth slowed, sparking a rally in short-dated Treasuries, with the likelihood of a Federal Reserve rate cut in September reaching nearly 90%.
Global Economy
US jobs growth revised down by 258,000 for May-June.
The July employment report, released on August 1, 2025, showed significant downward revisions to US jobs growth, with the Labor Department reducing total job gains by 258,000 for May and June.
Swiss President discusses increased U.S. tariffs with Trump.
On August 1, 2025, Swiss President Karin Keller-Sutter spoke with Donald Trump regarding increased U.S. tariffs, revealing differing views on their trade relationship and the unexpected tariff increase to 39 percent.
US sees tariffs as effective; $140B collected, more expected.
US Trade Representative Jamieson Greer stated on August 1, 2025, that few trade agreements might be reached by year-end, highlighting that dozens of countries will pay tariffs from 15% to 50% and the US has collected $140 billion in tariff revenue.
Market Overview
Global stock markets decline on Trump's tariff plan, weak jobs data.
On August 1, 2025, global stock markets declined due to President Trump's announced tariff plan and weak U.S. jobs data, with the Dow Jones falling 1.23%.
Tariff Effects
Tariffs impact ESG policy, causing uncertainty in Southeast Asia.
At the 2025 Bloomberg Sustainable Business Summit in Singapore, Deborah Elms and Mary Ng discussed the impact of tariffs on ESG policy, highlighting the uncertainty and challenges posed by tariffs, particularly for Southeast Asia.