On August 1 local time, affected by U.S. tariff policies and July employment data falling far short of expectations, all three major U.S. stock indices declined.

At the close, the Dow Jones Industrial Average fell 1.23%; the S&P 500 dropped 1.60%; and the Nasdaq Composite tumbled 2.24%, marking its largest decline since April. The U.S. stock market lost over $1 trillion in value.

Data released early on the 1st by the CME FedWatch Tool showed that the probability of the Federal Reserve cutting interest rates by 25 basis points at its September monetary policy meeting surged sharply from 37.7% the previous day to 75.5%.

All three major U.S. stock indices fell collectively. Major tech stocks closed lower, with Amazon dropping over 8%.

Amazon’s Q2 earnings report showed revenue of $167.702 billion, exceeding market expectations of $162.047 billion. Net profit reached $18.164 billion, with earnings per share at $1.68, both above expectations. However, the company’s Q3 operating profit guidance fell short of expectations, and its AWS performance lagged behind Microsoft and Google, raising market concerns about the growth prospects of its cloud business.

Most Chinese concept stocks closed lower, with the Nasdaq Golden Dragon China Index dropping 1.82%. Among popular Chinese stocks, NIO rose 2.67%, New Oriental gained 1.22%, while JD Group fell 1.84%, Baidu Group declined 1.98%, and Trip.com Group dropped 2.13%.

On the news front, data released by the U.S. Labor Department on August 1 showed that U.S. non-farm payrolls increased by 73,000 in July, below expectations, with the unemployment rate edging up to 4.2%. Additionally, May and June non-farm payroll data were sharply revised downward. Specifically, May’s figure was revised from 144,000 to just 19,000, while June’s was adjusted from 147,000 to 14,000.

Experts stated that uncertainty from U.S. government tariff policies has led to increased caution among American businesses, and the labor market is deteriorating rapidly.

Furthermore, the latest data from the Institute for Supply Management (ISM) showed that the U.S. manufacturing PMI for July was 48%, down from 49% in June.

Market sentiment was also impacted by President Trump’s updated tariff policy the night before the August 1 deadline. On July 31 local time, Trump signed an executive order setting "reciprocal tariffs" on multiple countries and regions, with rates ranging from 10% to 41%. On the same day, the White House announced that Trump had signed an executive order raising tariffs on Canada from 25% to 35%, effective August 1.

The U.S. dollar and oil prices plummeted, while gold surged.

After the latest U.S. economic data was released, the U.S. Dollar Index (DXY) dropped from 100.23 to 98.66 within half an hour, with a fluctuation exceeding 150 points. It was last reported at 98.68, down 1.38% for the day.

Oil prices also plunged, while spot gold rallied sharply, breaking through $3,360.