New Delhi [India], August 2 : US stock markets faced heavy selling pressure on Friday (local US time) after President Donald Trump implemented fresh reciprocal tariffs on 70 countries, including India.
The new tariffs have raised fears of rising inflation in the US, as imports will become more expensive and prices of goods sold in the country are expected to rise in the coming months.
The major US stock indices witnessed sharp declines. The Dow Jones Industrial Average fell by over 1.2 per cent to close at 43,588.58, down by 542.40 points.
The S&P 500 also dropped by 1.6 per cent, losing 101 points to settle at 6,238. The tech-heavy Nasdaq index tanked more than 2.2 per cent, falling by 472 points to close at 20,650.
Several major US companies saw their share prices tumble. Amazon Inc. shares on the Nasdaq declined sharply by 8.27 per cent. Shares of tech giant Apple also dropped by 2.5 per cent, reflecting broad-based selling across the technology sector.
In a major development, President Trump abruptly fired Dr. Erika McEntarfer, the head of the Bureau of Labor Statistics (BLS).
Trump accused her of releasing "fake" jobs data ahead of the 2024 US Presidential Election in an attempt to support Vice President Kamala Harris.
In a social media post, Trump said, "I was just informed that our Country's 'Jobs Numbers' are being produced by a Biden Appointee, Dr. Erika McEntarfer, the Commissioner of Labor Statistics, who faked the Jobs Numbers before the Election to try and boost Kamala's chances of Victory. This is the same Bureau of Labor Statistics that overstated the Jobs Growth in March 2024 by approximately 818,000 and, then again, right before the 2024 Presidential Election, in August and September, by 112,000."
Trump added, "These were Records -- No one can be that wrong? We need accurate Jobs Numbers. I have directed my Team to fire this Biden Political Appointee, IMMEDIATELY. She will be replaced with someone much more competent and qualified."
The panic in global markets extended to Europe as well. Germany's DAX index dropped by more than 2.7 per cent, while France's CAC index fell by 2.99 per cent, showing heavy selling pressure across European markets too.
Investors remain concerned over the uncertainty triggered by Trump's tariff move and the possible economic consequences it could bring.