US job growth slowed to near-stall in July, with nonfarm payrolls rising by only 73,000, according to Labor Department figures released Friday. The unemployment rate held at 4.2 per cent, but large downward revisions to prior months erased a combined 258,000 jobs from the employment tally, underscoring a clear loss of momentum in the labour market.

The July gain fell well short of economists’ forecasts for a rise of about 109,000. Health care added 55,000 jobs and social assistance 18,000, but most sectors were flat, while federal government payrolls shrank by a further 12,000 — extending a seven-month decline that has eliminated 84,000 positions since January.

Wages advanced 0.3 per cent from the previous month to $36.44 an hour, up 3.9 per cent on the year. The average workweek edged higher to 34.3 hours, while labour force participation stayed at 62.2 per cent, half a percentage point lower than a year ago. Long-term unemployment climbed to 1.8 million, representing nearly one in four jobless Americans.

After the weak July jobs report, U.S. stocks fell sharply and Treasury yields dropped, as investors increased bets on a September Federal Reserve rate cut. The S&P 500, Nasdaq, and Dow all posted significant losses. The probability of a September cut jumped to over 85%, up from around 38% before the data. The market downturn was compounded by President Trump’s announcement of new tariffs on multiple countries, adding to concerns over economic growth and policy uncertainty.