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2025-08-01 22:09:55
US stocks fell in early trading, with market participants saying the "ugly" non-farm payroll report may make the Fed regret not cutting interest rates this week. A weak US non-farm payroll report reinforced market bets on a Federal Reserve rate cut, sending US Treasuries surging. US stocks opened lower as investors weighed the economic impact of President Donald Trump's sweeping tariffs. At 9:30 a.m. New York time, the S&P 500 opened down 1%, the Nasdaq 100 fell 1.3%, and the Dow Jones Industrial Average fell 0.9%. Amazon's poor profit outlook sent its stock price plummeting. The yield on the two-year US Treasury note fell 20 basis points to 3.75%. Money markets have fully priced in two rate cuts this year, with a 76% probability for the first in September. The US dollar fell, ending a six-day rally. "This is a tough report," said Michael O'Rourke of JonesTrading, adding that the Fed should consider resuming rate cuts next month. "This report is very bearish for stocks and bullish for bonds." "Friday's non-farm payroll report was weaker than expected, suggesting that employers appear to be holding back amid heightened macro uncertainty," said Glen Smith of GDS Wealth Management. "Job growth has been slowing for months, a trend that could prompt the Federal Reserve to cut interest rates as early as this fall." For Alexandra Wilson-Elizondo of Goldman Sachs Asset Management, the weaker-than-expected non-farm payroll report directly challenges the hawkish stance of the Federal Reserve at this week's meeting.
