02.08.2025 10:02
A dramatic plunge in the US stock market on Friday resulted in a staggering loss of over $1 trillion in a single day. This significant downturn, impacting all major indexes, stemmed from a confluence of factors including weaker-than-expected labor data and prevailing policy uncertainty that unsettled investors.
The Dow Jones Industrial Average experienced its most substantial single-day decline since June 13th, plummeting 542 points (1.23%) to close at 43,588. Similarly, the S&P 500 fell 1.60% to 6,238, marking its worst weekly performance since May 23rd, erasing recent gains. The Nasdaq Composite also suffered a considerable setback, falling 2.24% to 20,650 – its steepest daily drop since April 21st.
This widespread sell-off particularly impacted large technology and consumer companies. Amazon endured a particularly rough day, with an 8.27% drop, one of its worst performances this year. Apple, Microsoft, Meta, and Alphabet (Google's parent company) also experienced significant declines, ranging from 1.51% to 3.03%. The semiconductor industry was not spared either, with Nvidia, AMD, and Intel all experiencing notable losses. However, not all tech companies suffered equally, with Qualcomm managing a small gain. Financial institutions also felt the pressure, with JPMorgan Chase, Bank of America, and Wells Fargo experiencing substantial drops.
Despite the general market downturn, a few sectors defied the trend. Several healthcare and consumer defensive stocks showed resilience. Eli Lilly, for example, saw a 3.01% increase driven by continued investor optimism regarding its obesity drug development. Johnson & Johnson, Amgen, and AbbVie also registered positive gains.
The market's instability followed the release of July's disappointing jobs report. The report revealed a mere 73,000 increase in nonfarm payrolls, significantly below the anticipated 100,000, further exacerbating investor anxieties. Compounding this, downward revisions to previous months' job growth figures added to the overall negative sentiment, creating a perfect storm for market volatility. This, combined with existing policy uncertainties, triggered the massive sell-off observed on Friday.
