Dow closes 500 points lower Friday as weak jobs data and new tariffs incite sell-off: Live updates

Stocks closed lower on Friday, after a weaker-than-expected jobs report worried investors that the economy is meaningfully slowing down.

The S&P 500 slipped 1.6% to close 6,238.01, while the Nasdaq Composite pulled back 2.24% 20,650.13. The Dow Jones Industrial Average fell 542.40 points, or 1.23%, to finish the session 43,588.58.

— Brian Evans

The recent rally in Avis Budget Group shares could mean the stock is poised for a pullback, according to Goldman Sachs.

Analyst Lizzie Dove downgraded the stock to sell from neutral, citing a "stretched" valuation and a "lack of near-term catalysts for higher normalized EBITDA." Her updated price target reflects more than 38% downside from Thursday's close.

This comes as the stock has risen about 75% in the past three months and nearly 102% year to date. Earlier this week, shares plunged more than 15% on the heels of the car rental company reporting that its second-quarter earnings dropped 75.6% from the same period a year ago.

"The Street is over-estimating the level of normalized EBITDA, and our estimates of ~$1.1bn on a long term basis are unchanged, with GS ~6% below Visible Alpha EBITDA estimates in 2026 (our 2025/2027 forecasts are -3%/-6%)," the analyst wrote in a note dated Thursday. "As such, the recent run-up in the stock means that CAR shares are trading at >10x EV/EBITDA (meaningfully higher than the historical average of 7-8X), which we believe is not justified."

— Sean Conlon

President Donald Trump on Friday said he has ordered the firing of Erika McEntarfer, commissioner at the the U.S. Bureau of Labor Statistics, on the heels of a weaker-than-expected jobs report. The BLS is the government agency that reports and collects economic data such as employment every month, as well as the consumer price index.

"I was just informed that our Country's 'Jobs Numbers' are being produced by a Biden Appointee, Dr. Erika McEntarfer, the Commissioner of Labor Statistics, who faked the Jobs Numbers before the Election to try and boost Kamala's chances of Victory," Trump said in a Truth Social post. "We need accurate Jobs Numbers. I have directed my Team to fire this Biden Political Appointee, IMMEDIATELY. She will be replaced with someone much more competent and qualified. Important numbers like this must be fair and accurate, they can't be manipulated for political purposes."

Trump also said Friday's jobs report was a "mistake" and took additional shots at Federal Reserve Chair Jerome Powell.

"Jerome 'Too Late' Powell should also be put 'out to pasture,'" he said.

— Brian Evans

July's softer-than-expected jobs report is shifting investor attention away from inflation, according to Citizens co-head of global markets Eric Merlis.

"The market has pivoted, at least for today, away from inflation and is reacting to what the data is telling us. The labor market appears to have materially weakened," Merlis said. "While that boosts the odds of a September rate cut, a genuine slowdown in employment could weigh on economic growth and, by extension, corporate earnings."

— Brian Evans

The White House on Friday released a statement with a more upbeat view of the economy, even after the latest U.S. jobs report came in well below expectations and included massive downward revisions to May and June employment figures.

"Inflation has cooled, wages have increased, unemployment is stable, and the private sector is growing. President Trump's America First agenda has ensured new jobs go to American citizens. ... The tariffs are raking in billions of dollars to make our country wealthy again," said press secretary Karoline Leavitt in the statement.

Leavitt also implored Federal Reserve Chair Jerome Powell to cut interest rates at the U.S. central bank's next meeting "so our economy can continue to boom."

— Lisa Kailai Han

During Friday's market selloff, 25 stocks in the S&P 500 traded at new 52-week lows.

Names that hit this milestone included:

• Charter Communications trading at lows not seen since May 2024
• Chipotle Mexican Grill trading at lows not seen since November 2023
• Lululemon trading at lows not seen since April 2020
• Colgate-Palmolive trading at lows not seen since February 2024
• UnitedHealth trading at lows not seen since April 2020
• UPS trading at lows not seen since March 2020
• Accenture trading at lows not seen since March 2023
• Dow Inc trading at levels not seen since March 2020
• CarMax trading at lows not seen since December 2022
• Tyson Foods trading at lows not seen since February 2024

The seven S&P 500 stocks trading at new 52-week highs were:

• Altria (MO) trading at levels not seen since November 2018
• CBOE Holdings (CBOE) trading at all-time high levels back to its IPO in June 2010‎
• ResMed (RMD) trading at levels not seen since September 2021
• Northrop Grumman (NOC) trading at all-time highs back to the merger between Northrop Aircraft and Grumman Aerospace in 1994.
• American Electric Power (AEP) trading at all-time highs back through our history to 1972
• Evergy (EVRG) trading at levels not seen since August 2022
• Xcel Energy (XEL) trading at levels not seen since September 2022

— Christopher Hayes, Lisa Kailai Han

Odds of a rate cut in September jumped on prediction platform Kalshi after a disappointing jobs report.

Kalshi is now pricing in a 75% probability for a quarter-point rate reduction next month, up from about 39% Friday morning before the weak labor market data. The prediction market is now also assigning a small 8% chance of a rate cut greater than quarter point in September.

The dismal jobs report, including the dramatic revisions, could provide incentive for the Federal Reserve to lower interest rates when it next meets in September. Following the report, futures traders raised the odds of a cut at the meeting to 75.5%, up from 40% on Thursday, according to CME Group data.

— Yun Li

Consumer sentiment improved slightly in July while inflation fears continued to recede, according to the University of Michigan's latest survey released Friday.

The headline sentiment rose to 61.7, up 1.6% monthly, still down 7.1% from a year ago but roughly in line with the Dow Jones consensus. On inflation, the one-year outlook dipped to 4.5% while the five-year view fell to 3.4%, both the lowest readings since February.

In other economic news, the ISM manufacturing index nudged lower to 48, down 1 point and below the estimate for 49.5. The employment index fell further as did supplier deliveries and prices. Order backlogs rose.

—Jeff Cox

Stocks leading Friday's steep market declines include bull market tech favorites, a few major banks and some bellwether names.

Shares of each 'Magnificent 7' stock were in the red in morning trading, with Nvidia down almost 3.8%, Meta down 2.7% and Alphabet and Tesla each down more than 1.5%. Amazon shares slid more than 6% on the back of its gloomy profit guidance.

Retail favorite Palantir, which has jumped about 101% this year, shed roughly 4%.

Banks also rolled over on concerns that a drastic slowing of economy could curb loan growth. Shares of JPMorgan, Wells Fargo, Goldman Sachs and Bank of America each tumbled roughly 3.5%. Citigroup lost 4%.

GE Aerospace and construction giant Caterpillar similarly fell on concerns of softening economic growth, with each stock down 3%.

— Pia Singh

Stocks were under pressure on Friday as a weaker-than-expected jobs report indicated the economy is significantly slowing.

The S&P 500 fell 1.2%, while the Nasdaq Composite lose 1.5%. The Dow Jones Industrial Average pulled back 485 points, or 1.1%.

— Brian Evans

President Donald Trump continued his barrage of insults against Federal Reserve Chair Jerome Powell, saying in his latest Truth Social post that the Fed chair should cut interest rates. The post comes after a weak jobs report, and after the central bank earlier this week held rates steady.

"Too Little, Too Late. Jerome 'Too Late' Powell is a disaster. DROP THE RATE!" Trump said. "The good news is that Tariffs are bringing Billions of Dollars into the USA!"

— Sarah Min

The U.S. economy added fewer jobs than anticipated in July, with nonfarm payrolls increasing by just 73,000. Economists polled by Dow Jones expected an increase of 100,000 jobs for the month.

On top of that, jobs growth for May and June was revised much lower.

— Fred Imbert

Federal Reserve governors Christopher Waller and Michelle Bowman both said they wanted a quarter percentage point reduction, as they see tariffs having only a temporary impact on inflation.

They said staying on hold, as the rate-setting Federal Open Market Committee has done since December, poses risks to the economy.

Read the full story here.

— Brian Evans

The market may soon be due for some pullback, according to Jonathan Krinsky of BTIG.

"With the S&P and Nasdaq riding their longest streaks above their [20-day moving averages] since the late '90s, it's notable that we now have equal-weight S&P and [Nasdaq-100] as well as small and mid-caps all below their respective 20 DMAs," the firm's chief market technician wrote in a note dated Thursday.

"We continue to think the next meaningful move near-term is lower, with a re-test of the Feb. highs (6100) as a reasonable target," he continued.

This comes as both the S&P 500 and the Nasdaq Composite reached all-time intraday highs during Thursday's session.

— Sean Conlon

Ray Dalio has sold his remaining shares in Bridgewater and stepped down from its board of directors.

Bridgewater completed the final sale of Dalio's stake in Bridgewater, completing his management transition that began 2022, according to a person familiar with the matter. Dalio will still be a significant investor in Bridgewater's strategies and a mentor, the person added.

— Brian Evans

Chevron reported second-quarter results that took a hit due to lower oil prices and the company's acquisition of Hess. The company's net income dropped about 44% to $2.49 billion from $4.43 billion in the prior year.

— Fred Imbert

The U.S. has now raised its tariff on Canadian imports to 35% from 25%, effective Friday, with the U.S. saying "Canada has failed to cooperate in curbing the ongoing flood of fentanyl and other illicit drugs."

"Goods qualifying for preferential tariff treatment under the United States-Mexico-Canada Agreement (USMCA) continue to remain not subject to the IEEPA Canada tariffs," the White House said in a statement.

— Fred Imbert

Asia-Pacific markets ended the day lower on Friday.

Hong Kong's Hang Seng Index declined 1.07% to close at 24,507.81, while mainland China's CSI 300 index decreased by 0.51% to 4,045.93.

Japan's Nikkei 225 benchmark ended the day 0.66% lower at 40,799.60, while the broader Topix index ticked up 0.19% to 2,948.65.

Meanwhile, South Korea's Kospi index retreated 3.88% to close at 3,119.41, while the small-cap Kosdaq plunged 4.03% to 772.79.

Australia's S&P/ASX 200 benchmark fell 0.92% to end the day at 8,662.

Over in India, the 50-stock benchmark Nifty 50 was down 0.48%, while the BSE Sensex index lost 0.34% as of 2:02 p.m. Indian Standard Time (4:32 a.m. ET).

— Amala Balakrishner

U.S. President Donald Trump signed an executive order Thursday that modified "reciprocal" tariffs on dozens of countries, with experts warning more tariff hikes could be on the table.

"Of particular concern is the continued uncertainties [trading partners] will face with new sectoral tariffs coming and possibilities of additional tariffs if the Administration believes countries are not operating in good faith in their implementation efforts," said Wendy Cutler, a former deputy U.S. trade representative.

"No doubt about it — the executive order and related agreements concluded over the past few months tears up the trade rule book that has governed international trade since WW2. Whether our partners can preserve it without the United states is an open question," added Cutler, who is also a senior vice president of the Asia Society Policy Institute.

Stephen Olson, senior visiting fellow at ISEAS-Yusof Ishak Institute and a former U.S. trade negotiator, was of the same view: "Don't assume this is the end of the story ... more deals and further tariff increases are almost certain to follow."

"Countries wishing to trade with the U.S. will now face dramatically higher tariffs that could be further increased at the whim of a president who has shown a disdain for trade rules and agreements, even those he himself has signed," Olson added.

Read more about the latest tariff announcement here.

— Anniek Bao

European pharmaceutical stocks sold-off after President Donald Trump sent letters to 17 companies, including U.S. firms, in the sector.

Shares of Novo Nordisk listed on the Copenhagen exchange fell by around 4%, London-listed AstraZeneca was also lower by 3.9%. Meanwhile, GSK, Sanofi and Novartis were also in the red.

— Ganesh Rao

Swiss luxury stocks are expected to come under pressure when trading begins on Friday after U.S. President Donald Trump raised import duties on Switzerland to 39%.

Analysts at investment bank Jefferies said Richemont, Swatch Group and London-listed Watches of Switzerland could be affected.

"The overnight news that the US will impose an increased import tariff on Swiss imports of 39% could cause pain in CFR but especially in UHR and WOSG today," said Jefferies analysts led by James Grzinic in a note to clients.

The analysts said that since the tariffs begin on Aug. 7, there is still room to maneuver.

"Of course that is one week away, allowing for plenty of last minute tweaks and changes to be agreed," they added. "However, the direct impact of this extreme change (compared to investors likely assuming a 15% to follow given the recent EU deal) is meaningful in the watches vertical."

— Ganesh Rao

U.S. President Donald Trump's revised duties on Asian territories were "expected," Lorraine Tan, director of equity research at Morningstar said, adding that they were unlikely to impact markets.

"The fact that the larger export countries such as Korea and Japan are at 15% and the SE Asian countries are at 19% is a fairly reasonable outcome especially after the initial April 2 shock," she wrote in a Friday note.

Negotiations between the U.S. and China are now in focus, Tan said.

"We think the new 90-day extension between China and US may be viewed as headwind by investors given that a framework seemed to be already in place for the last 3 months amid multiple rounds of negotiations," Morningstar's Asia equity market strategist Kai Wang said in the same Friday note.

"The extension is signaling that there may be some snags in talks which have the potential to fall apart entirely given that Trump is still indirectly targeting China through transshipping and other loopholes," Wang said, adding that the performance of the Hang Seng Index and the CSI 300 index in the last two days largely supported this thesis.

— Amala Balakrishner

August is about to kick off, and thus far some 123 IPOs have priced in 2025, according to Renaissance Capital. That's up 48.2% from the year-ago period.

A few highly anticipated debuts have seen their shares soar since they began trading, too. At the top of the list, Circle Internet has posted a 492% gain since its June 5 IPO, while Figma is already toting a 250% advance having just started trading on Thursday.

Eighteen companies have doubled from their IPO price this year, and seven of these are U.S. based.

Even as more companies have debuted in 2025 compared to a year ago, the total proceeds are down. Proceeds from this year's IPOs add up to $19.7 billion, off more than 15% from this time last year, Renaissance found.

However, it's notable that many small and foreign-based companies have come to market this year, with 70 of the new debuts being based outside of the U.S.

–Gina Francolla, Darla Mercado

U.S. stocks are likely to power through any shift in market opinion that the Federal Reserve is less likely to lower interest rates as much as previously thought in 2026, according to Capital Economics.

The move in markets since the end of the Fed meeting on Wednesday fits the pattern in the past couple of years in which "increases in U.S. interest rate expectations and/or long-term Treasury yields have proven at most a temporary headwind for the equity market," wrote Jonas Goltermann, deputy chief markets economist.

"That is on account of the rise and rise of the U.S. tech sector amid the boom in AI investment, which is seen as a secular trend that outweighs most smaller shifts in the cyclical outlook (if not major ones, like the 'Liberation Day' shock in April and the recession scare last August)," the economist wrote Thursday. "Bumper earnings" from Meta Platforms and Microsoft late Wednesday "will presumably strengthen that line of thinking. Our sense is that between a resilient U.S. economy and strengthening AI enthusiasm, the equity market surge may well extend faster than we have factored into our forecasts," Goltermann said.

— Scott Schnipper

Almost half, or 45.6%, of individual investors say stocks in general are overvalued, according to the latest weekly poll conducted by the American Association of Individual Investors.

More than a third of respondents, or 37.8%, said valuations are mixed, with some stocks expensive while others are cheap.

Less than a seventh of those polled, just 13.5%, said stocks are, in general, fairly valued.

Only 1.5% of those surveyed said stocks are undervalued at current prices.

— Scott Schnipper

Shortly after 6 p.m. ET, S&P 500 futures were down 0.1%. Futures tied to the Dow Jones Industrial Average were 19 points lower, or about 0.05%. Nasdaq-100 futures slipped nearly 0.2%.

— Pia Singh