U.S. equity markets reversed sharply from record highs, with the S&P 500 and Nasdaq posting weekly losses of 2% to 3% amid rising volatility and macro uncertainty. A weaker-than-expected July jobs report, coupled with significant downward revisions to prior months, signaled a softening labor market and triggered a drop in Treasury yields. The Federal Reserve held rates steady but acknowledged growing risks, with markets now pricing in a high probability of a rate cut in September. Tariff negotiations intensified, with mixed outcomes across trading partners and a notable increase in average U.S. tariff rates, raising concerns about inflation and consumption. Despite macro headwinds, earnings season remained strong, with analysts upgrading Q2 S&P 500 EPS growth forecasts to over 10%. Technical indicators turned bearish, and market breadth narrowed, suggesting a potential near-term pullback following a strong multi-month rally.