Economic 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]

Core Points - Concerns over the U.S. economy and job market have intensified, leading to a decline in U.S. stock markets on August 1 [2] - The Dow Jones Industrial Average fell by 485 points, a decrease of 1.1%, while the S&P 500 dropped by 1.2% and the Nasdaq Composite decreased by 1.5% [2] - The U.S. dollar index experienced a rapid decline of over 1%, and the yield on 10-year U.S. Treasury bonds fell by more than 12 basis points, indicating rising expectations for a Federal Reserve interest rate cut [2]

Core Viewpoint - The U.S. labor market is showing signs of deterioration, with rising unemployment and disappointing job growth, leading to significant market reactions [1] Employment Data - In July, the U.S. unemployment rate increased by 0.1 percentage points to 4.2% [1] - The number of non-farm jobs added in May and June was significantly revised downward, indicating a cooling labor market [1] Market Reactions - Following the employment data release, the U.S. dollar index fell by over 1% [1] - The yield on 10-year U.S. Treasury bonds dropped by more than 12 basis points [1] - Major U.S. stock indices experienced declines of over 1% in early trading [1] Federal Reserve Expectations - Market concerns about the U.S. economy and employment have led to increased expectations for a Federal Reserve interest rate cut [1] - The probability of a 25 basis point rate cut at the September monetary policy meeting rose from 37.7% to 75.5% [1]