U.S. stocks slumped at the open Friday, dragged lower by a disappointing July jobs report and renewed political pressure on the Federal Reserve, as former President Donald Trump reignited criticism of Fed Chair Jerome Powell while doubling down on tariffs as a key economic lever.

At 9:33 a.m. ET, the Dow Jones Industrial Average dropped 502.52 points, or 1.14%, to 43,628.5. The Nasdaq Composite sank 331.53 points, or 1.57%, to 20,790.9, and the S&P 500 shed 75.88 points, or 1.20%, to 6,263.5. Losses were broad-based, with all major indexes firmly in the red as Wall Street opened the new month with caution.

Weak Payroll Gains Underscore Slowing Labor Market

The U.S. economy added just 73,000 nonfarm payroll jobs in July, according to the Bureau of Labor Statistics—well below consensus expectations of around 115,000. While the unemployment rate held steady at 4.2%, sharp downward revisions to May and June’s job gains—cut by a combined 258,000—suggest the labor market is losing more steam than previously believed.

Wage growth remained in check, with average hourly earnings climbing 0.3% month-over-month and 3.9% year-over-year, both in line with forecasts. The average workweek edged up to 34.3 hours, a modest uptick that failed to lift market sentiment. Healthcare remained a rare bright spot, adding 55,000 jobs, while federal government employment fell by 12,000 and is down 84,000 since January.

Political Heat Turns Up on the Fed

The labor data landed just minutes after Donald Trump, posting on Truth Social, called Fed Chair Jerome Powell “a disaster,” demanding immediate rate cuts. “Too Little, Too Late. Jerome ‘Too Late’ Powell is a disaster. DROP THE RATE!” Trump wrote, before touting tariffs as a revenue boon for the U.S. economy.

His message adds fuel to speculation about future monetary policy direction amid political and inflationary crosscurrents. Trump’s reemphasis on tariffs also resurfaced market concerns over cost pressures and global trade friction, especially as tariff-related headwinds are expected to subtract $1.1 billion from Apple’s costs in the current quarter.

Equities React to Rate Cut Hopes, Growth Worries

The mixed implications of the jobs report—weak growth but stable wages—led to volatile early trading. While the data arguably opens the door for rate cuts, investor sentiment remains clouded by concerns over slowing economic momentum. Tech-heavy Nasdaq stocks were hit hardest as margin-sensitive sectors recoiled from signs of consumer fatigue and political noise. Financials underperformed amid falling Treasury yields, with the 10-year sliding 8 basis points to 4.32%.

Outlook: Fed in Focus, September Decision Looms

Today’s weak payroll print puts the Fed in a difficult position. While steady unemployment gives the central bank room to wait, the downward revisions may pressure policymakers to accelerate easing if August data confirm the slowdown. According to Wedbush, “The jobs market isn’t flashing outright recession, but the downward revisions to prior months underscore that conditions are cooling faster than headline numbers previously suggested”.

For now, investors are bracing for further economic data and Fed commentary ahead of the September FOMC meeting. All eyes will remain on inflation trends, consumer demand, and geopolitical risks—including the evolving tariff landscape—as markets seek firmer footing amid uncertainty.