URGENT UPDATE: US stocks have plunged sharply following disappointing jobs data for July 2023 and escalating tensions between the United States and Russia. The latest report shows nonfarm payrolls increased by just 73,000 jobs, with prior months’ figures revised down by more than 250,000.
The stock market reacted immediately, with the Dow Jones falling 1.5%, the S&P 500 down 1.9%, and the Nasdaq dropping 2.6% in afternoon trading. This represents the worst job growth since the pandemic, averaging a mere 35,000 jobs over the last three months.
In a heated social media post, former President Donald Trump indicated he has directed his team to fire the head of the Bureau of Labor Statistics, labeling her a political appointee by President Joe Biden. He claimed, “The economy is booming under Trump,” and criticized Federal Reserve Chairman Jerome Powell for his monetary policy decisions.
The disappointing job figures have triggered a significant rethink among Wall Street strategists regarding the economic outlook. The yield on the US 10-year note plummeted 14 basis points to 4.23%, raising questions about the Federal Reserve’s future interest rate policies.
Meanwhile, Trump has also announced a military response, stating he is shifting two nuclear submarines “to appropriate regions” due to “foolish and inflammatory statements” made by Russian officials, specifically targeting Dmitry Medvedev. This marks a significant escalation in the already tense US-Russia relations.
Trading highlights reveal that ASX futures are down by 42 points or 0.5%, with Australian dollar trading at US64.43¢. Bitcoin has seen a sharp decline of 3% to $114,145. In commodities, gold prices have risen by 1.8% to $3,347.97 an ounce, while Brent oil has dipped 2.8% to $69.69 a barrel.
As the market digests these developments, investors are urged to pay close attention to upcoming economic reports and the evolving geopolitical landscape. Next week, significant local reporting will begin, with companies like Beach Energy and Credit Corp scheduled to release earnings.
With the political and economic climate shifting rapidly, the implications for both Wall Street and the broader economy could be profound. Stay tuned for live updates as this story develops.
