The US financial markets experienced a thrilling turmoil yesterday, with the stock market suffering heavy losses, as market capitalization evaporated by $1.1 trillion overnight, catching investors off guard. Major stock indices fell across the board, with the Dow Jones Industrial Average plunging 600 points, the S&P 500 index dropping 1.6%, and the technology-heavy Nasdaq Composite Index plummeting by 2.2%. The entire market is shrouded in a gloomy atmosphere.

The trigger for this market turbulence is the recently released employment data. In July, the number of new jobs added was only 79,000, far below analysts' expectations of 104,000, and this significant gap has provoked a strong reaction from the market. Even more worrying is that the employment data for May and June has also been significantly revised down, further highlighting the weakness in the job market.

These disappointing economic indicators have sparked deep doubts in the market about the current trade policies. Since the government implemented a series of aggressive trade measures, the global trade system has been impacted, and the U.S. economy is facing numerous challenges. Companies' willingness to invest has declined, consumer confidence has been undermined, and signs of slowing economic growth are becoming increasingly evident. The less-than-ideal employment data undoubtedly exacerbates market concerns that trade policies may have a counterproductive effect on the U.S. economy.

However, this unexpected data may become an important factor driving adjustments in monetary policy. After the data was released, the market's expectations for a potential interest rate cut in September surged, with the probability skyrocketing from 40% to 80%. With the stock market experiencing a big dump, people began to reassess current economic policies and look forward to more stimulus measures to boost market confidence.

This sudden market turmoil not only reflects investors' concerns about the economic outlook but also highlights the challenges faced by policymakers. Achieving a balance between maintaining economic growth and ensuring market stability will be a serious issue for the government and regulatory agencies to consider in the coming period.