Key Takeaways
- Major U.S. stock indices closed significantly lower on Friday, August 1, 2025, with the Dow Jones Industrial Average falling 556.09 points (1.26%) to 43,574.89, the S&P 500 dropping 102.61 points (1.62%) to 6,236.78, and the Nasdaq declining 455.01 points (2.15%) to 20,667.44.
- Federal Reserve Governor Adriana Kugler announced her resignation, effective August 8, 2025, to return to Georgetown University. This news contributed to a further drop in U.S. Treasury yields, with the 10-year Treasury yield decreasing by 14.6 basis points to 4.214%.
- Former President Donald Trump made multiple unsubstantiated claims that recent jobs numbers were "rigged" and a "total scam," asserting they were designed to make him "look bad." He also criticized Fed Chair Powell, stating he was "no better" than the "rigged" jobs numbers.
- Traders have increased their expectations of the Federal Reserve cutting interest rates in September.
U.S. stock markets experienced a notable downturn on Friday, August 1, 2025, as major indices recorded significant losses at the unofficial close. The Dow Jones Industrial Average concluded the day down 556.09 points, or 1.26 percent, settling at 43,574.89. Similarly, the S&P 500 fell 102.61 points, a 1.62 percent decline, to 6,236.78, while the Nasdaq saw the steepest percentage drop, losing 455.01 points, or 2.15 percent, to close at 20,667.44.
Adding to the market's unease, Federal Reserve Governor Adriana Kugler submitted her resignation to former President Trump, effective August 8, 2025. Kugler intends to return to Georgetown University this fall. This announcement prompted a further decline in U.S. Treasury yields, with the 10-year Treasury yield dropping 14.6 basis points to 4.214%.
Amidst these market movements, former President Donald Trump made several claims without offering evidence, asserting that the recent jobs numbers were "rigged" and a "total scam." He specifically stated that "today’s jobs numbers were rigged to make me look bad" and criticized Fed Chair Powell, claiming Powell was "no better" than the "rigged" figures.
Despite the day's market performance, speculative traders have reduced their short bets against the dollar to the lowest level since April. Concurrently, market participants are increasingly anticipating that the Federal Reserve will implement an interest rate cut in September.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.