Global Market Volatility: US Stock Market Experiences Significant Downturn Amidst Inflation Concerns and Trade Tensions
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US Stock Market Sheds $1 Trillion as Bitcoin Drops Below $130K
The U.S. stock market has experienced a massive downturn, shedding over $1 trillion in value in a single day’s trading. This drastic decline is attributed to rising inflation and new trade tariffs that have sparked widespread investor panic.
The Dow Jones fell by 1.2%, the S&P 500 slid 1.6%, and the Nasdaq dropped a staggering 2.2% – one of the largest single-day losses in recent history. In addition, the dollar recorded its sharpest one-day decline since April 10, while Treasury yields plummeted sharply, reflecting the widespread risk aversion across markets.
A dismal jobs report, revealing only 106,000 new positions added over the past three months, further fueled market jitters. President Trump’s unexpected dismissal of Bureau of Labor Statistics Commissioner Erika McEntarfer, without evidence, and his aggressive tariff plan, have also contributed to the investor sentiment slump. The Employment Situation — July 2025 data highlights the stark reality of just 106,000 new positions added over the past three months.
New U.S. tariffs have escalated global trade tensions, with Switzerland now facing a 39% levy, while Canada is forced to pay 35% duties on non-compliant goods. Both countries have thus far refrained from immediate retaliation. Mexico has been granted a 90-day extension to finalize a revised trade agreement.
In the midst of this market turmoil, Bitcoin plummeted below $130,000, with signs of a potential drop towards $112,000 if selling pressure continues. CoinGlass data indicates that over $1 billion in liquidations have taken place across crypto derivatives within a span of 24 hours, wiping out both long and short positions alike, intensifying the market downturn.
Analysts are currently divided on how lengthy this volatility will persist as monetary policy tightens and geopolitical tensions escalate.
Source: coinchapter.com
