Stocks sink on Bay and Wall Streets, but loonie rises following new tariffs

Global stock markets, including those on Wall Street and the TSX in Canada saw steep losses through the Friday trading day as new tariffs take effect.

The U.S. stock market had its worst day since May on Friday after the government reported a sharp slowdown in hiring and U.S. President Donald Trump imposed sweeping tariffs on imports from a number of U.S. trading partners.

The S&P 500 fell 1.6%, its biggest decline since May 21 and its fourth straight loss. The index also posted a 2.4% loss for the week, marking a sharp shift from last week’s record-setting streak of gains.

The Dow Jones Industrial Average fell 1.2%, while the Nasdaq composite fell 2.2%.

The Toronto Stock Exchange also lost ground Friday, closing down 239 points or 0.88%, after Trump raised tariffs on Canada to 35% in an order signed Thursday. The Canadian dollar traded for 72.48 cents US, up from 72.23 cents US on Thursday.

Worries on Wall Street about a weakening economy were heavily reinforced by the latest report on job growth in the U.S. Employers added just 73,000 jobs in July. That is sharply lower than economists expected. The Labor Department also reported that revisions shaved a stunning 258,000 jobs off May and June payrolls.

Markets also reacted to the latest tariff news. President Donald Trump announced tariff rates on dozens of countries and pushed back the scheduled effective date to Aug. 7, adding more uncertainty to the global trade picture.

“The market has been felled by a one-two punch of additional tariffs, as well as the weaker-than-expected employment data -— not only for this month, but for the downward revisions to the prior months,” said Sam Stovall, chief investment strategist at CFRA.

Trump’s decision to order the immediate firing of the head of the government agency that produces the monthly jobs figures will only fuel the market’s uncertainty, Stovall added.