Dow Jones Sheds 3% as US Stock Market Retreats Today – Can DJIA Support Hold?
U.S. equity markets faced their sharpest weekly setback in months, with Dow Jones falling for 5 days, dragged down by "weak" labor data...
Quick overview
- U.S. equity markets experienced their largest weekly decline in months, with the Dow Jones falling nearly 3% and the NASDAQ and Russell 2000 dropping over 2%.
- The selloff was driven by weak labor data revisions, the implementation of new tariffs, and escalating political tensions surrounding employment statistics.
- Geopolitical concerns also impacted market sentiment, particularly following reports of U.S. nuclear submarine positioning amid rising tensions with Russia.
- Looking ahead, the market may face further volatility if political and tariff-related uncertainties continue to overshadow corporate earnings.
Live DOW Chart
U.S. equity markets faced their sharpest weekly setback in months, with Dow Jones falling for 5 days, dragged down by weak labor data, fresh tariffs, and mounting political drama.
Market Pullback Deepens
The major U.S. indices ended the week sharply lower as selling pressure persisted across the board. The NASDAQ and Russell 2000 each tumbled over 2%, reflecting broad risk aversion in tech and small-cap sectors. The Dow Jones Industrial Average, after flirting with record highs, fell nearly 3% for the week, slipping below its 20-day simple moving average—a key technical support level that had sustained the index during its recent climb.
Dow Jones Chart daily – Will MAs Hold?
Drivers Behind the Selloff
Market sentiment was hit by a confluence of factors. Tariffs officially took effect on August 1, rattling global trade expectations and raising cost pressures for manufacturers. Jobs data revisions painted a significantly weaker labor market, which President Donald Trump criticized as manipulated, sparking further political friction.
Geopolitical tensions also crept into market psychology as reports surfaced that the U.S. positioned nuclear submarines in “appropriate regions” following provocative remarks from former Russian President Dmitry Medvedev. The week closed with another bombshell: the head of the Bureau of Labor Statistics was dismissed for allegedly falsifying employment data to damage President Trump’s standing, intensifying the political storm around the jobs report.
Friday’s Closing Performance: Wall Street Ends Week Sharply Lower
- Dow Jones Industrial Average (DJIA): Fell 542.40 points, or -1.23%, ending at 43,588.58.
- S&P 500 Index: Dropped 101.38 points, or -1.60%, to 6,238.01.
- NASDAQ Composite: Slumped 472.32 points, or -2.24%, to 20,650.13.
- Russell 2000 Index: Declined 44.86 points, or -2.03%, finishing at 2,166.78.
The sharp Friday selloff reflected broad risk aversion, with tech and small-cap stocks underperforming, while defensive sectors failed to attract significant inflows.
Weekly Performance Recap
- Dow Jones Industrial Average: -2.92%
- S&P 500 Index: -2.36%
- NASDAQ Composite: -2.17%
The earnings season continues next week with the following companies reporting:
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Monday: Berkshire Hathaway, Palantir, Wayfair,
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Tuesday: Pfizer, Caterpillar, BP, AMD, Super Micro, Arista, Snap, Vertex
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Wednesday: Uber, Disney, Shopify, Applovin, Fortinet, DraftKings
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Thursday: Eli Lilly, ConocoPhillips, Block, Pinterest, Sony, Twilio
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Friday: Wendy’s
Market Outlook: The week’s combination of technical breakdowns, geopolitical tension, and domestic policy uncertainty signaled a potential shift in market tone. If tariffs and political volatility continue to overshadow corporate earnings strength, the coming weeks may see further turbulence—especially if risk-sensitive sectors like tech and small-caps fail to regain momentum.
Dow Jones Live Chart
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