12:27 PM EDT, 08/01/2025 (MT Newswires) -- US equity indexes sank, with government bond yields and crude oil sliding after nonfarm payrolls showed a significant deterioration in the labor market and the Trump administration unleashed new punitive import tariffs on international trade partners.

The Nasdaq Composite slumped 1.9% to 20,732.1 in midday trading on Friday, with the S&P 500 down 1.4% to 6,250.5 and the Dow Jones Industrial Average 1.2% lower at 43,601.8. Consumer staples and utilities led the gainers, while consumer discretionary, energy, and financials led the decliners.

Nonfarm payrolls rose by 73,000 in July, the Bureau of Labor Statistics reported Friday. The consensus was for a 104,000 increase, according to a survey compiled by Bloomberg. The BLS said the revisions for May and June were "larger than normal," with gains downgraded by 133,000 to 14,000 for June and by 125,000 for May.

The unemployment rate moved up to 4.2% from 4.1% in June, as expected by analysts.

"A notable deterioration in US labor market conditions appears to be underway," BMO Chief US Economist Scott Anderson said in a note.

The odds of a 25-basis-point rate cut by the Federal Reserve in September shot up to 77% on Friday from 38% on Thursday, according to the CME FedWatch tool.

Meanwhile, President Donald Trump announced new punitive import tariffs overnight on dozens of international trade partners.

"Trump signed an executive order imposing reciprocal tariffs between 10% and 41% on US imports from various countries," Saxo Bank said in a note. "India's exports to the US face a 25% tariff, Taiwan's 20%, Switzerland's a staggering 39%, and South Africa's 30%. Additionally, Trump raised tariffs on Canadian goods from 25% to 35%," the research note cited the White House.

Most US Treasury yields declined, with the 10-year yield sinking 12.3 basis points to 4.24% and the two-year rate plunging 21.8 basis points to 3.73%.

Gold futures jumped 1.6% to $3,402.4 per ounce.

West Texas Intermediate crude oil futures slumped 2.8% to $67.34 a barrel.