Trump Tariffs and Weak Jobs Data Trigger 2.6% Nasdaq Drop and 8.1% Amazon Slide

Investor sentiment turned sharply negative in late July and early August 2025 as weak U.S. employment data and renewed tariff threats from Donald Trump sent shockwaves through the stock and cryptocurrency markets. The latest nonfarm payrolls report showed that the U.S. economy added only 73,000 jobs in July—far below the 100,000 forecast by economists—while the Labor Department also revised the previous two months’ data downward, highlighting a deteriorating labor market [1]. This development, combined with Trump’s aggressive tariff adjustments, triggered a broad sell-off across major financial assets [1].

The impact was immediate and widespread. The Dow Jones Industrial Average dropped more than 1.7% in early August, while the S&P 500 and Nasdaq fell by 1.9% and 2.6% respectively [2]. Major tech stocks such as Amazon, Meta Platforms, Microsoft, and Apple experienced significant declines, with Amazon slipping as much as 8.1% following the release of weaker-than-expected earnings [3]. The market’s reaction was driven by both economic concerns and policy uncertainty.

Cryptocurrencies were not immune to the downturn. Bitcoin, which had seen modest gains in July, fell below $114,000 in early August, effectively wiping out half of its monthly gains [4]. In parallel, shares of major crypto firms like Coinbase, Riot Platforms, and CleanSpark also fell sharply, plummeting between 7% and 16% amid the broader sell-off [5].

The trigger for the market turmoil extended beyond weak jobs data to include Trump’s aggressive tariff policy changes. On August 1, he announced revised tariffs on a range of imports, increasing rates from 10% to as high as 41%, including a 35% rate on Canadian goods, up from 25% [1]. These moves heightened fears of a trade war and economic slowdown, compounding investor anxiety.

Analysts pointed to the combination of weaker labor market conditions and policy uncertainty as key concerns. Charlie Ripley, senior investment strategist at Allianz Investment Management, noted that the data signals “that labor market conditions continue to cool,” though he emphasized that this does not necessarily indicate a warning for investors [1]. Macquarie strategists Thierry Wizman and Gareth Berry described early August trading as beginning “with a bit of panic,” reflecting the market’s reaction to the dual headwinds [1].

The Federal Reserve’s response to these developments remains a critical factor. Although the weak jobs report could justify earlier interest rate cuts, Trump’s recent public criticisms of Federal Reserve Chair Jerome Powell have further complicated the outlook. In a series of posts, Trump called Powell a “stubborn MORON” and urged the Federal Reserve Board to “assume control” and cut rates without delay [1]. Such rhetoric has heightened uncertainty and added further downward pressure on markets.

The broader equity market has been under pressure for weeks, with the S&P 500 experiencing three consecutive days of losses before the latest sell-off. Since Trump took office, the S&P 500 has risen 5.7%, while the Nasdaq is nearly 8% higher and the Dow 1.5% higher compared to levels on January 19, 2025 [1]. However, the recent downturn highlights growing investor concerns about the economy’s resilience in the face of shifting policy and global trade tensions.

Source:

[1] https://fortune.com/2025/08/01/stocks-open-lower-job-numbers-tariffs-trump-dow-nasdaq-s-and-p/

[2] https://www.investopedia.com/dow-jones-today-08012025-11783196

[3] https://www.bloomberg.com/news/articles/2025-08-01/s-p-500-slides-after-weak-jobs-data-trump-s-new-tariff-salvos

[4] https://m.fastbull.com/news-detail/crypto-a-weak-start-to-a-difficult-month-4338008_0

[5] https://cointelegraph.com/news/crypto-stocks-tumble-alongside-btc-equities-as-tariff-fears-resurface