On July 21, 2025, U.S. stock markets faced a significant decline after the Bureau of Labor Statistics reported that the economy added fewer jobs than anticipated in July, with the unemployment rate unexpectedly rising to 4.3%. This news intensified recession fears and led investors to anticipate potential interest rate cuts by the Federal Reserve. Traders are now pricing in three rate cuts this year—in September, November, and December—with expectations of a 50 basis-point reduction in September. The yield on the benchmark 10-year Treasury note dropped further below the 4% level, trading around 3.79%. nz.finance.yahoo.com
Individual stocks mirrored the broader market's downturn. Chipmaker Intel's earnings report raised questions about the profitability of AI investments for major tech companies. Additionally, the "Magnificent 7" tech stocks—Nvidia, Tesla, Meta, Apple, Microsoft, Alphabet, and Amazon—saw declines ranging from 1% to over 8%, contributing to the overall market sell-off. The Russell 2000 index, which tracks smaller companies, posted a weekly loss of about 6.8%, indicating widespread market weakness. nz.finance.yahoo.com