---
title: "U.S. stocks opened lower, with market participants stating that the \"ugly\" non-farm payroll report may make the Federal Reserve regret not cutting interest rates this week"
description: "U.S. stocks fell in early trading as a weak non-farm payroll report sparked market bets on a Federal Reserve rate cut. The S&P 500 index dropped 1%, the Nasdaq 100 index fell 1.3%, and the Dow Jones I"
type: "news"
locale: "en"
url: "https://longbridge.com/en/news/251219515.md"
published_at: "2025-08-01T14:03:50.000Z"
---

# U.S. stocks opened lower, with market participants stating that the "ugly" non-farm payroll report may make the Federal Reserve regret not cutting interest rates this week

> U.S. stocks fell in early trading as a weak non-farm payroll report sparked market bets on a Federal Reserve rate cut. The S&P 500 index dropped 1%, the Nasdaq 100 index fell 1.3%, and the Dow Jones Industrial Average declined 0.9%. Investors are focused on the impact of Trump's tariff policy on the economy. U.S. Treasury yields decreased, and the money market expects two rate cuts this year. Analysts believe that the weakness in the non-farm report may prompt the Federal Reserve to cut rates in the fall

The weak U.S. non-farm payroll report reinforced market bets on a Federal Reserve rate cut, causing U.S. Treasury yields to surge. As investors assessed the impact of President Donald Trump's comprehensive tariffs on the economy, U.S. stocks opened lower. At 9:30 AM New York time, the S&P 500 index opened down 1%, the Nasdaq 100 index fell 1.3%, and the Dow Jones Industrial Average dropped 0.9%. Amazon's profit outlook was poor, leading to a significant decline in its stock price. The yield on the U.S. two-year Treasury note fell by 20 basis points to 3.75%. The money market has fully priced in expectations for two rate cuts this year, with a 76% chance of the first cut occurring in September. The dollar fell, ending a six-day rally. "This is an ugly report," said Michael O’Rourke of JonesTrading, stating that the Federal Reserve should consider resuming rate cuts next month. "This report is very bearish for the stock market and bullish for bonds." "Friday's non-farm report was weaker than expected, indicating that employers seem to be on the sidelines amid increasing macro uncertainty," said Glen Smith of GDS Wealth Management. "The slowdown in job growth has persisted for several months, and this trend may prompt the Federal Reserve to cut rates as early as this fall." For Alexandra Wilson-Elizondo of Goldman Sachs Asset Management, the non-farm payrolls falling short of expectations directly challenged the Fed's hawkish stance at this week's meeting

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> **Disclaimer**: This article is for reference only and does not constitute any investment advice.