US Stocks Plummet 1.6%, Tech Stocks Down 2% Amid Weak Jobs Report and OPEC+ Production Increase Speculation

Global equity markets fell sharply after the US Labor Department published weak job numbers, with the S&P 500 down 1.6% and the Nasdaq falling 2%. Amazon and Apple were also sold off, despite exceeding expectations in their results. The Eurostoxx 50 index fell 2.5%, and the global MSCI index closed down 1.3%. The weak jobs data has raised expectations of a recession and sparked talk of US rate cuts, causing US bond yields to tumble and the Greenback to weaken against most currencies.

Global equity markets fell sharply on Friday, July 2, 2025, following the release of weak US job numbers by the Labor Department. The S&P 500 dropped 1.6%, while the Nasdaq index fell 2%. Tech giants Amazon and Apple, which had exceeded expectations in their earnings reports, were also sold off. The Eurostoxx 50 index declined by 2.5%, and the global MSCI index closed down 1.3%.

The weak jobs data has raised expectations of a recession and sparked talk of US rate cuts, causing US bond yields to tumble and the Greenback to weaken against most currencies. The dollar index, which measures the greenback against a basket of currencies, fell 1.23% on the day, reaching its lowest level since January 2023 [1].

The Fed has indicated it is in no rush to cut rates due to concerns about President Donald Trump’s tariff policies reigniting inflation. However, traders have increased bets on rate cuts following the weak jobs report. Traders now price in 63 basis points of cuts by year-end, up from around 34 basis points on Thursday [1].

The Swiss franc was among the hardest hit, falling against a range of currencies in response to Trump’s new tariff rates. The Swissie dropped 0.9% against the dollar, reaching its lowest level since June 23 [1]. The Canadian dollar strengthened 0.43% against the greenback, despite facing a 35% tariff [1].

The Bank of Japan held the line on borrowing costs, keeping the overnight call rate at 0.5%. This move, along with comments from Finance Minister Katsunobu Kato expressing concern about currency moves, weakened the yen [1].

The US economy has shown signs of slowing down, with economic growth moderating through the first half of the year. Gross domestic product increased at a solid 3% annual rate, but final sales to private domestic purchasers rose at the slowest pace since the end of 2022 [2].

The global trade war, sparked by Trump’s tariffs, has led to a stampede out of the dollar, with billions of dollars flowing into developing nations. The world is still facing some of the steepest US tariffs since the 1930s, with rates of 15% or more for countries with trade surpluses with the US [2].

The dollar had gained earlier on Friday after Trump imposed new tariff rates on dozens of trade partners. However, the weak jobs data and downward revisions led to a significant drop in the greenback [1].

The Fed’s next meeting is scheduled for September 16-17, and the August jobs data, to be released on September 5, will be closely watched to determine whether the Fed cuts rates in September [1].

References:

[1] https://www.businesstimes.com.sg/companies-markets/us-dollar-tumblestraders-bet-more-us-rate-cuts-after-weak-jobs-report
[2] https://www.bloomberg.com/news/articles/2025-08-02/world-economy-latest-us-job-market-wavers-in-cue-for-fed