Congress has cut federal funding for public media — a $3.4 million loss for LAist. We count on readers like you to protect our nonprofit newsroom. Become a monthly member and sustain local journalism.
Stock markets drop as Trump unleashes new round of global tariffs
Stocks slumped after President Trump unveiled a new round of global tariffs and after the U.S. created fewer jobs than expected in July.
(
Spencer Platt
/
Getty Images
)
Stock markets fell sharply on Friday, as U.S. unemployment rose and President Donald Trump unveiled steep tariffs on a wide range of countries.
Trump's latest tariffs, announced late Thursday, are reigniting concerns about how these import taxes would impact the U.S. and the global economies.
On Friday morning, a weaker-than-expected jobs report amplified investors' fears about the consequences: Employers created only 73,000 jobs in July, fewer than the around 100,000 jobs economists had expected. The unemployment rate ticked up to 4.2%.
Support for LAist comes from
The Dow Jones Industrial Average fell more than 550 points, or about 1.3%, in morning trading. The S&P 500, which tracks the largest U.S. companies, fell about 1.5%, and the tech-heavy Nasdaq dropped about 2%.
A busy week of economic data
The latest tariffs announcement and the weak jobs report come at the end of a busy economic news week. Investors have been parsing the Federal Reserve's decision to hold interest rates steady. They've also been watching the earnings reports of the largest U.S. companies, which have been updating investors on how tariffs are affecting their abilities to make money.
The broad sell-off on Friday marks an abrupt reversal from Wall Street's optimism this summer. Markets went into a tailspin in April when Trump first unveiled his tariffs, before he started pausing and softening some of those tax rates.
Since then, global investors have largely been shrugging off his updated plans. But on Friday, their worries came roaring back, amplified by the new evidence that these tariffs are affecting the jobs market.
The jobs weakness is likely to increase calls for the Federal Reserve to lower interest rates when it next meets in September. The central bank held rates steady earlier this week, out of concern that rising tariffs would put more upward pressure on prices.
"The cracks in the labor market have widened substantially and add further pressure on the Federal Reserve to lower interest rates," Nationwide Chief Economist Kathy Bostjancic wrote on Friday morning.
Copyright 2025 NPR
As Editor-in-Chief of our newsroom, I’m extremely proud of the work our top-notch journalists are doing here at LAist. We’re doing more hard-hitting watchdog journalism than ever before — powerful reporting on the economy, elections, climate and the homelessness crisis that is making a difference in your lives. At the same time, it’s never been more difficult to maintain a paywall-free, independent news source that informs, inspires, and engages everyone.
Simply put, we cannot do this essential work without your help. Federal funding for public media has been clawed back by Congress and that means LAist has lost $3.4 million in federal funding over the next two years. So we’re asking for your help. LAist has been there for you and we’re asking you to be here for us.
We rely on donations from readers like you to stay independent, which keeps our nonprofit newsroom strong and accountable to you.
No matter where you stand on the political spectrum, press freedom is at the core of keeping our nation free and fair. And as the landscape of free press changes, LAist will remain a voice you know and trust, but the amount of reader support we receive will help determine how strong of a newsroom we are going forward to cover the important news from our community.
Please take action today to support your trusted source for local news with a donation that makes sense for your budget.
Thank you for your generous support and believing in independent news.
Chip in now to fund your local journalism
(
LAist
)
Trending on LAist
-
UCLA and University of California leaders are fighting Trump’s demands for a $1.2 billion settlement over a litany of accusations, including that the campus permits antisemitism. -
Wasteland Weekend is all about souped-up rust buckets, spikey costumes and an ‘ideal apocalypse.’ -
The Shadow the Scientists initiative at UC Santa Cruz strives to demystify astronomical research. -
Some submissions to the Pasadena Humane Society were made by extremely talented artists. The others … tried their best. -
Isolated showers can still hit the L.A. area until Friday as remnants from the tropical storm move out. -
First aspiring spectators must register online, then later in 2026 there will be a series of drawings.
Best of LAist