Stocks dive as job numbers disappoint and tariff ‘panic’ sets in

• Stocks fell in early trading after a weak jobs report and the beginning of the Trump tariff rollout. The Labor Department drastically reduced the number of new jobs for the past two months as July’s figures fell short of expectations. Trump, meanwhile, made last-minute changes to tariff rates ahead of his self-imposed deadline.

More last-minute modifications to tariff rates and a disappointing July jobs report weighed heavily on investors as the market opened Friday.

The Dow Jones Industrial Average tumbled 520 points (1.1%) as of 9:40 a.m. ET. The Nasdaq Index was off 332 points (1.6%) and the S&P fell 77 points (1.2%).

Nonfarm payrolls were up by 73,000 last month, which was far less than the 100,000 economists were expecting. In addition, the Labor Department revised previous months downward, saying June job growth, which was previously reported at 147,000, was actually just 14,000. May’s count was also changed from 125,000 to 19,000.

That indicated the job market has been weak for quite a while now, something many Americans suspected, despite the bullish jobs numbers. The only possible bright side to that is it could give the Federal Reserve a reason to cut interest rates sooner than expected.

“Today’s data signals labor market conditions continue to cool and while the softer conditions don’t warrant a warning signal for investors, it should put market participants including the Fed on notice that economic conditions are shifting,” said Charlie Ripley, senior investment strategist for Allianz Investment Management.

Tariffs were the chief weight on stocks, though. Overnight, Trump updated the levies, which now range from 10% to 41%. Even goods that were transshipped to avoid the tariffs will face a 40% tariff now. And Canada will now have a 35% levy, up from 25%.

Macquarie strategists Thierry Wizman and Gareth Berry, in a note to investors, wrote trading at the start of the month was beginning “with a bit of panic.”

Amidst all this, Trump resumed his public criticisms of Fed chair Jerome Powell, seemingly encouraging the Fed Board to launch a coup. “Jerome ‘Too Late’ Powell, a stubborn MORON, must substantially lower interest rates, NOW,” Trump wrote. “IF HE CONTINUES TO REFUSE, THE BOARD SHOULD ASSUME CONTROL, AND DO WHAT EVERYONE KNOWS HAS TO BE DONE!”

The weak market open comes after three consecutive days of losses for the S&P 500. Since Trump has taken office, the S&P 500 has increased 5.7%. The Dow is up 1.5% and Nasdaq is just shy of 8% higher, compared to where they stood on Jan. 19.

This story was originally featured on Fortune.com