The US stock markets saw a staggering wipeout, losing over $1 trillion in market value. Speculations for reasons are suggested as soaring inflation and sweeping new trade tariffs triggered widespread investor panic.
The Dow plunged 1.2%, the S&P 500 slid 1.6%, and the Nasdaq dropped 2.2%, contributing to the multi-hundred-billion-dollar decline across equities. The dollar sank in its steepest one-day fall since April 10, while Treasury yields dropped.
The July jobs report came in weaker than expected, showing just 106,000 new positions added over the past three months. In response, President Trump said he had ordered the dismissal of Bureau of Labor Statistics Commissioner Erika McEntarfer, accusing her—without evidence—of manipulating employment data for political reasons. The move, combined with his aggressive new tariff plan, weighed heavily on markets Friday.
Global trade tensions escalated as the US imposed steep tariffs, prompting mixed responses from allies like Switzerland and Canada. Switzerland now faces a 39% levy, while Canada sees 35% duties on non-compliant goods, though neither country plans immediate retaliation. Mexico received a 90-day extension to finalize a revised trade agreement.
Analysts are debating how long US stock volatility will persist amid tightening monetary policy and geopolitical tensions.
Bitcoin Dips Below $130K
Bitcoin also came under pressure, dipping shortly below $130,000. Reports are indicating a sharp move past the $115,000 level as markets turned risk-averse.
CoinGlass data suggests that more than $1 billion in liquidations occurred across the crypto derivatives market within the past day. The liquidation wave, intensifying the downturn, wiped out both long and short positions as investors scrambled amid the volatility.
WatcherGuru tweeted @WatcherGuru:
“JUST IN: 🇺🇸 $1.11 trillion wiped out from US stock market today.”
This is a developing story. BeInCrypto will continue to provide updates as more information becomes available.
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