BREAKING: US stocks have plunged sharply following disappointing July jobs data and rising geopolitical tensions with Russia. The latest report reveals that nonfarm payrolls increased by just 73,000 in July, with prior months’ gains revised down by over 250,000, signaling the worst job growth since the pandemic began.
In a surprising move, former President Donald Trump announced on social media that he has directed his team to fire the head of the Bureau of Labor Statistics, criticizing her as a political appointee of President Joe Biden. He also stated, “The economy is booming under Trump,” emphasizing his discontent with current Federal Reserve Chairman Jerome Powell.
The implications of this latest jobs report are immediately impactful. As the US economy has averaged a mere 35,000 new jobs per month over the last three months, analysts are re-evaluating the outlook for interest rates. The yield on the US 10-year note fell dramatically, plunging 14 basis points to 4.23% in afternoon trading in New York.
Separately, Trump announced he is relocating two nuclear submarines “to appropriate regions” in response to comments made by former Russian president Dmitry Medvedev, labeling them “foolish and inflammatory.” This military maneuver intensifies the already strained relationship between the US and Russia.
Market reactions are unfolding rapidly: as of 2:15 PM New York time, the Dow dropped 1.5%, the S&P 500 fell 1.9%, and the Nasdaq tumbled 2.6%. The VIX index, a measure of market volatility, surged by 4.77% to 21.49. In commodities, gold rose 1.8% to $3,347.97 per ounce, while Brent oil prices dropped 2.8% to $69.69 a barrel.
As the week progresses, attention is turning to next week’s local reporting season, which will feature significant announcements from companies such as Beach Energy, Credit Corp, and AMP.
This urgent situation is developing, and analysts are closely monitoring the potential fallout from both the economic indicators and the geopolitical landscape. With whispers of higher taxes for the wealthy and ongoing discussions about the economy, the pressure on lawmakers is palpable.
Stay tuned for more updates as this story unfolds, as the implications for both the economy and international relations are profound.
