Stocks Slide as Trump Tariffs Bite, Tech Earnings Mix
Market Futures Dip Ahead of Key Jobs Data Release
Stock market futures showed significant weakness Friday as investors grappled with updated tariff rates announced by President Trump, alongside mixed earnings reports from major technology firms. All eyes are now on the forthcoming July jobs report for further economic indicators.
Tariff Tensions Escalate
President Donald Trump unveiled revised duties, with tariffs ranging from 10% to a substantial 41%. A new 40% levy will target goods transshipped to evade existing tariffs, according to the White House. For Canada, a key U.S. trading partner, import duties have been raised to 35% from 25%.
“Investors have been wrapping tariffs in a ‘better than feared, we finally have clarity’ patina of optimism for weeks, but that perspective is wearing thin as reality sets in – tariffs will have stagflationary implications for the economy as they slowly seep into the data over the course of many months. We continue to think this issue is more negative than the consensus appreciates.”
—Adam Crisafulli, Vital Knowledge
Big Tech’s Divergent Fortunes
Shares of Amazon experienced a sharp decline, plummeting over 7% after the e-commerce titan issued conservative operating income guidance for the current quarter. Conversely, Apple saw its stock climb 2%, buoyed by better-than-expected earnings and revenue figures.
Jobs Report Looms
Markets are also anticipating the July jobs report, scheduled for release at 8:30 a.m. ET. Economists project a cooling labor market, with an estimated 100,000 new payroll additions and an unemployment rate expected to tick up to 4.2%.
Previous Session and Monthly Performance
The previous trading session was largely uninspiring, with the S&P 500 marking its third consecutive day of losses. Despite strong earnings from Microsoft and Meta Platforms, the broader market failed to gain momentum. The tech-driven rally that pushed both the S&P 500 and Nasdaq to intraday records ultimately faded.
US stocks finished lower Thursday, with the Dow Jones Industrial Average dropping over 100 points as investors reacted to President Trump’s updated tariff rates and digested some big tech earnings. The S&P 500 and Nasdaq also ended in the red.
— Reuters (@Reuters) 17224731200000000000
“The S&P 500 forecast remains bullish for now, but the path forward looks uncertain. On one hand, Big Tech is delivering in spades, feeding into the [artificial intelligence] gold rush and lifting equity markets to record highs. On the other, geopolitical tensions, valuation concerns and monetary policy uncertainty are threatening to pull the rug from under this rally.”
—Fawad Razaqzada, City Index
Despite recent headwinds, major indices concluded July on a positive note. The S&P 500 rose 2.2% for the month, while the Nasdaq saw a 3.7% gain. The Dow Jones Industrial Average eked out a modest increase of less than 0.1%.
For the current week, the S&P 500 is tracking for an 0.8% loss. The Dow is down 1.7% week-to-date, and the Nasdaq is hovering near flat with a gain of less than 0.1%.