Market Wrap | U.S. Markets Plunge Amid Weak Jobs Data and Rate Cut Speculation

On August 1, 2025, U.S. markets experienced a significant sell-off, with the S&P 500 falling 1.60%, the Dow Jones Industrial Average declining 1.23%, and the Nasdaq Composite dropping 2.24%. This market downturn comes amid recent U.S. employment data showing a notable slowdown, with only 73,000 jobs added in July, well below the expected 110,000. This weak employment report has fueled speculation about potential Federal Reserve interest rate cuts, with traders now predicting a 75% chance of a 25 basis point cut at the September meeting.

The market saw a mixed performance across various sectors. The technology, discretionary consumer goods, energy, and financial sectors underperformed the S&P 500. Conversely, the utilities, healthcare, and essential consumer goods sectors bucked the trend and posted gains.

AbbVie shares rose 3.28% today, driven by the company's increased profit forecast for the year. This surge is attributed to strong demand for its immunology drugs, Skyrizi and Rinvoq. Meanwhile, Eli Lilly's shares climbed 3.01% due to the expansion of coverage for its weight loss drugs.

Today, the U.S. stock market saw significant movements across several key companies. LOBO's stock surged by 118.69%, driven by a projected revenue growth of 41.5% for 2025, which is expected to boost investor confidence. Performant's stock also saw a substantial rise of 115.21%, following a $670 million acquisition by Machinify, offering shareholders a 139% premium. On the other hand, Safe & Green's stock dropped by 56.80%, with SG Blocks Inc. showing several negative signals indicating weak performance in the coming days or weeks. Psyence Biomedical's stock plummeted by 53.08%, due to financial strains and strategic concerns.

Recent U.S. labor data showed signs of weakness, with July non-farm payrolls increasing by only 73,000, significantly below expectations. This has led to increased speculation among traders regarding potential rate cuts by the Federal Reserve, with the odds of a September rate cut rising. Additionally, the downward revision of May and June job figures supports calls for monetary easing, further affecting market sentiment. Meanwhile, Apple has faced an $8 billion loss due to tariffs and anticipates additional costs in the coming quarter. Despite this, the company continues to acquire firms to enhance its AI capabilities. Furthermore, the Federal Reserve's overnight reverse repurchase agreements usage has notably decreased from $214.45 billion to $97.42 billion, reflecting changes in market liquidity dynamics.