1. S&P 500 dropped 1.60% due to disappointing job data. 2. NFP revisions for May and June revised down by 258K jobs. 3. July payrolls rose by only 73K, below expectations. 4. Fed may shift to a rate cut after poor employment figures. 5. Q2 GDP growth at 3%, but consumption growth is slowing.
The significant downward revisions of job numbers can undermine investor confidence, similar to past events where labor market weaknesses contributed to stock declines.
The unexpected job report revisions surprise investors, triggering immediate selling pressure on the S&P 500.
Immediate market reactions observed following the NFP report indicate a quick impact, but confidence can recover with strong future reports.