U.S. stock markets wrapped up the month with a notable decline as traders grew cautious about two major upcoming events: new tariffs set by President Donald Trump and the closely watched U.S. jobs report. All three major indexes, the Dow Jones, S&P 500, and Nasdaq, fell on Thursday. Market sentiment was hit by increased global trade tensions and uncertainty around labor market strength, both of which could influence the Federal Reserve’s next policy move.
A newly signed executive order by former President Trump announced sweeping tariffs ranging from 10% to 41% on imports from over 65 countries. Affected nations include key U.S. trade partners such as India, Thailand, South Korea, and Taiwan, with effective enforcement beginning August 7, 2025. The new tariff regime also includes surprise duties on Canada (35%) and Switzerland (39%), leaving international markets scrambling for clarity. Investors worry the measures could lead to retaliatory actions, disrupt supply chains, and add to inflationary pressure globally.
Attention now turns to the upcoming U.S. jobs report, scheduled for release Friday morning. Economists predict around 110,000 new jobs added in July and expect a slight increase in the unemployment rate to 4.2%.
These numbers could heavily influence expectations around whether the Federal Reserve will cut interest rates in September. A stronger-than-expected jobs report might reduce the chances of rate cuts, adding pressure to a market already dealing with trade turbulence. Meanwhile, Apple, although posting better-than-expected earnings, warned that new tariffs could cost the company an extra $1.1 billion, highlighting the potential business impact of geopolitical decisions.
Market Snapshot
| Market Index | Change |
| Dow Jones | ↓ 0.9% |
| S&P 500 | ↓ 0.9% |
| Nasdaq Composite | ↓ 0.9% |
| Volatility Index | ↑ 2-week high |
