S&P 500 Falls 1.6% to 6,238, Largest Drop Since May 21, Euro Stoxx 50 Down 3% on Jobs Report and Tariff Concerns

The S&P 500 experienced a 1.6% decline on August 1, 2025, marking its largest drop since May 21, closing at approximately 6,238 points. This selloff was driven by a disappointing US jobs report and the reintroduction of tariffs, which heightened concerns about a potential global economic slowdown. The market reaction has increased expectations for a Federal Reserve interest rate cut in September. Additionally, the Euro Stoxx 50 index fell by 3%, reflecting broader international market weakness. The US dollar has strengthened, prompting discussions about a new market equilibrium and increased volatility. Economic analysts have raised concerns about the impact of these developments on production, exports, and overall economic activity in the second half of the year.