Sou Hu Cai Jing·2025-08-02 03:44Economic Overview - The unemployment rate in the U.S. increased by 0.1 percentage points to 4.2% in July, with non-farm payrolls adding only 73,000 jobs, significantly below the expected 100,000 [1][5] - The job growth figures for May and June were also revised downward, indicating a cooling labor market [5] Market Reaction - Following the employment data release, U.S. stock indices collectively declined, with the Dow Jones falling by 1.23%, the S&P 500 down by 1.60%, and the Nasdaq dropping by 2.24% [1] - The week saw the Dow Jones experiencing its worst performance since early April, with a total decline of 2.92% [1] Federal Reserve Implications - The probability of a 25 basis point rate cut by the Federal Reserve in September surged from 37.7% to 75.5% following the disappointing employment data [5] - President Trump expressed dissatisfaction with the labor statistics and announced the dismissal of the Bureau of Labor Statistics director, Erica McEntyre, accusing her of manipulating employment data for political purposes [5][6] Federal Reserve Board Changes - Federal Reserve Board member Adriana Kugler announced her resignation effective August 8, allowing Trump to make new appointments to the board ahead of schedule [6]