The report on hiring in July added to worries about the economy. Stocks fell sharply, and Treasury yields declined in expectation of a Federal Reserve rate cut.The New York Times reports that the Wall Street experienced a sharp decline on Friday due to rising economic uncertainty. The stock market was jolted as investors grew worried about the Federal Reserve’s slow response to cutting interest rates. This unease was already present due to concerns about the economy and the performance of major technology stocks, but it was intensified by a weaker-than-expected jobs report for July. The S&P 500 fell 1.8 percent and the Nasdaq dropped 2.4 percent, while small stocks, government bond yields, and oil prices also saw declines. The Labor Department reported that only 114,000 jobs were added in July, significantly lower than the average of 215,000 over the past year. The unemployment rate also rose to 4.3 percent, the highest it has been since October 2021. According to Alex McGrath, chief investment officer at NorthEnd Private Wealth, this data is a cause for concern and may indicate a potential recession. Investors are now reevaluating the Fed’s plans for interest rate cuts and whether they will need to be more aggressive in order to prevent a recession. The Fed had previously raised rates in an effort to control inflation, but now must decide when and by how much to cut in order to support the economy. 

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