Tariff pain has returned for the stock market
Trump signed a list of updated tariffs on Thursday and said it was "too late" for nations to avoid the duties.
Major indexes dropped on Friday, while Treasury yields dropped.
President Donald Trump's "GREAT DAY" for America is finally here — but markets aren't cheering the latest news on the trade war.
Following weeks of encouraging updates on trade deals with major partners, US stocks dropped Friday after the president signaled he would stick to his August 1 deadline for tariff negotiations and signed an executive order that included an updated slate of taxes on imports.
The sell-off gained steam as investors took in a weaker-than-expected US jobs report. The economy added 73,000 jobs in July, according to the Bureau of Labor Statistics, lower than the 100,000 payrolls economists expected.
Treasury yields tumbled after the report, with the 10-year bon yield falling 10 basis points to 4.25%. The jobs data recalibrated expectations for rate cuts in September for the second time this week.
After the odds of a cut at the next meeting dwindled following Jerome Powell's cautious tone on the economy midweek, markets again revised the outlook.
According to the CME FedWatch Tool, traders now see a 67% chance of a 25 basis point cut in September, up from less than 50% on Wednesday.
A "GREAT DAY" for America
Trump's update to tariffs, which were announced in an executive order Trump signed Thursday evening, imposed import duties ranging from 10%-41%.
The order added that goods that are transhipped in a bid to avoid tariffs — swapping hands between other nations before coming to the US — will also be subject to a 40% tariff.
Some nations saw their updated tariff rates lowered from what Trump initially proposed, despite not yet coming to a trade agreement with the US. Taiwan, India, and Malaysia were among those that saw a slight tariff reduction. Some countries, like Brazil and Switzerland, saw their tariff rate increase.
Speaking to NBC News late Thursday, Trump said it was "too late" for nations to avoid the tariffs, but suggested that the door remained open to trade deals down the road. The updates are set to swing into effect on August 7, instead of the August 1 deadline Trump initially proposed and promoted as a "GREAT DAY FOR AMERICA" in a post on Truth Social earlier this week
"It doesn't mean that somebody doesn't come along in four weeks and say we can make some kind of a deal," he told NBC in a phone interview.
Even then, investors are pricing in the impact of tariffs more acutely, despite brushing off Trump's tariff threats in recent weeks. Some traders have been betting on the idea that Trump will eventually strike a softer tone on his trade policy, continuing what's come to be known as the TACO Trade (Trump Always Chickens Out).
Uncertainty over the tariff situation is still looming. Trade talks are still ongoing, and China, which was left off the updated list of tariffs, has a separate deadline of August 12 to reach a trade agreement with the US.
"This is unlikely to be the final word, as it still seems likely that some other countries will reach their own deals with the US, while there is a chance that the US courts will eventually strike down these tariffs," Stephen Brown, the deputy chief North America economist at Capital Economics wrote in a note.
"Tariff worries are back in focus," Glen Smith, chief investment officer at GSD Wealth Management, wrote Friday. "We remind investors that short-term swings can create good entry points for long-term investors."
Job market buckles
Employers added 73,000 jobs in July, below estimates of 100,000. But even more troubling were the revisions for May and June, which saw their figures revised lower by a combined 258,000. The unemployment rate edged up to 4.2%.
"Today's Jobs report is unambiguously soft and a reflection of the trade and tariff impact on economic growth," Art Hogan, the chief market strategist at B. Riley Wealth, wrote in a note. "Both the actual report and the big negative revisions are more evidence that the trade policy will slow growth," he added.
The downward revisions reveal "cracks" in the labor market, Jeffrey Roach, chief economist at LPL Financial, said. It's also causing more investors to expect a rate cut in September, he said, despite Fed Chair Powell striking a hawkish tone earlier in the week, Roach said.
"The stock market will probably move past this particular report and keep climbing this month, but today could be an ugly day in the market given the confluence of new tariff announcements and more evidence that the job market is slowing," Chris Zaccarelli, the chief investment officer at Northlight Asset Management, said in a note.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
20 minutes ago
- Yahoo
The 7 Largest Publicly Traded Ethereum Treasury Firms
The trend of publicly traded companies adopting crypto treasury strategies may have started with Bitcoin, but it has since expanded to a wide variety of digital assets—including the second-largest crypto asset by market cap, Ethereum. Now the race to accumulate ETH is on, led by key figures like Fundstrat's Tom Lee and Ethereum co-founder Joe Lubin, who are championing public firms as they rally around Ethereum and its future. Per public entities with Ethereum treasuries maintain more than 3.7 million ETH valued at nearly $17 billion, as of this writing, and more than 3% of the entire supply. These are the biggest holders as of this writing. 1. BitMine Immersion Technologies Led by crypto bull and Fundstrat CIO Tom Lee, BitMine Immersion Technologies burst onto the scene at the end of July when the firm detailed plans for an Ethereum treasury. Formerly focused on Bitcoin mining, BitMine (BMNR) first secured a $250 million private investment in public equity (PIPE) fundraising round to begin its ETH purchases. Since that time, it hasn't looked back, acquiring 1,150,263 ETH or more than $5 billion worth as of this writing. Tom Lee's Ethereum Treasury BitMine Ups ETH Raise by $20 Billion The aggressive buying spree has coincided with Lee's seemingly unfathomable ETH price predictions, which include calls for $60,000 ETH. That's a sizable multiple of the current price. After planning a raise of $4.5 billion to accumulate the asset, Lee and company upsized their offering by $20 billion in August as BitMine aims to expand its already industry-leading Ethereum treasury. 2. SharpLink Gaming Gambling marketer turned Ethereum treasury company SharpLink Gaming holds the second-largest publicly traded ETH treasury. The firm maintains 728,804 ETH, or $3.2 billion as of its latest release—around 73% of the way to its first stated goal of accumulating 1 million ETH. While SharpLink's existing business did not have immediate ties to crypto, it brought on direct ties to Ethereum when it shaped its board of directors. The firm's chairman Joe Lubin is the co-founder of Ethereum itself, and founder and CEO of Ethereum software company, Consensys, the maker of popular crypto wallet, MetaMask. (Disclaimer: Consensys is one of 22 investors in an editorially independent Decrypt) Why This SharpLink Whale Holds Millions in SBET—But Not Ethereum Lubin and company have followed BitMine in a relentless pursuit of Ethereum, raising funds in a variety of ways including a recent $400 million direct offering, plus plans to collect up to $6 billion via stock sales. In July, the firm added BlackRock's former head of digital asset strategy Joseph Chalom as its newly appointed CEO. 3. The Ether Machine There's no questioning the business of The Ether Machine, a firm made public via a merger of The Ether Reserve, LLC and a blank-check company earlier this year. The third-largest treasury on the list, The Ether Machine currently holds 345,362 ETH, or $1.5 billion at today's ETH prices. 'Ethereum Avengers' Firm to Generate ETH Using $1.5 Billion Stockpile Funded with startup capital and approximately 170,000 ETH from co-founder and chairman Andrew Keys, the Ether Machine stated a mandate to put its ETH to work on-chain or create a 'machine' to grow its stash, differentiating it from more passive accumulation vehicles. It most recently acquired around $40 million worth of ETH using cash from a previously established private placement. At the time of inception, it expected to pull in around $1.6 billion in total proceeds to use to fund Ethereum purchases. 4. Coinbase Leading American crypto exchange Coinbase maintains an investment of around $602 million or 136,782 ETH, according to its most recent 10-Q filing. That is more than 20,000 ETH greater than it ended 2024 with when it held 115,700 ETH based on an end of year 10-K filing. The firm also holds more than 11,000 Bitcoin as an investment, placing it among the top publicly traded holders of the largest crypto asset, as well. First hitting the public markets in 2021, shares in Coinbase made a new all-time high in July 2025 as crypto firms continued a streak of success alongside traditional equities. 5. Bit Digital Bitcoin miner Bit Digital formed an Ethereum treasury strategy during Q2 2025. In just a few short months, it's quickly added to its stash, jumping from 30,663 ETH at the end of June to 121,076 ETH as of August 11—now valued at more than $530 million. As part of its transition, the firm is ending its Bitcoin mining operations and redeploying funds towards ETH accumulation. Public markets didn't react strongly to the strategy shift, as shares of BTBT have gained just 2.63% year-to-date. 6. ETHZilla Biotech firm 180 Life Sciences rebranded its company to 'ETHZilla,' as it shifted focus to a digital assets treasury centered on Ethereum. The firm raised $425 million in late July to kickstart its treasury and quickly jumped up the holder rankings, acquiring 82,186 ETH as of August 12, valued around $362 million at today's ETH prices. 'Unleash the Zilla': Biotech Rebrands to ETHZilla, Raising Monster $425M for Ethereum Treasury A few weeks later, shares in ETHZilla (ATNF) quickly tripled after it was revealed that billionaire tech investor Peter Thiel and related entities had purchased a 7.5% stake in the company. As for its unique name? Chairman of the board McAndrew Rudisil told Decrypt in July that it 'comes from our focus to be one of the largest holders of ETH in the world.' 7. BTCS Inc. Blockchain Technology Consensus Solutions (BTCS) holds 70,140 ETH, worth around $309 million as of mid-August. The firm boasts a proactive strategy to acquire more Ethereum, putting its ETH to work on-chain using what is described as a 'powerful DeFi/TradFi financial model' to generate value for shareholders. In addition to acquiring ETH, the firm also bolstered its treasury with three Ethereum-based Pudgy Penguins NFTs in August. BTCS posted record revenues in Q2 of $2.77 million, marking a 394% increase year-over-year. Shares are up nearly 90% year-to-date.
CNN
20 minutes ago
- CNN
New Mexico's governor called in the state's National Guard to address crime issues. Here's how they're being used
Federal agencies US military Donald TrumpFacebookTweetLink Follow In New Mexico's most populous city, National Guard troops are listening to the police dispatch calls, monitoring traffic cameras and helping to secure crime scene perimeters, tasks not usually part of the job. The New Mexico National Guard is in Albuquerque to help counter what officials have called a surge in crime, but unlike the recent deployment of troops in military fatigues by the federal government in the nation's capital and earlier in Los Angeles amid protests over immigration enforcement, the state's polo-shirted Guard troops were ordered in by the Democratic governor. And last week, New Mexico's governor declared a state of emergency in other parts of the state, which gives her the discretion to mobilize more troops. Here's how a National Guard deployment is playing out in New Mexico and why it matters. Gov. Michelle Lujan Grisham's state of emergency order issued for Rio Arriba County, the city of Española and area pueblos, was made at the request of the local governments, she said. The Albuquerque deployment of 60 to 70 troops came after an emergency request from the city's police department citing the 'fentanyl epidemic and rising violent juvenile crime as critical issues requiring immediate intervention.' The new declaration is aimed at helping local police respond to a 'significant surge' in violent crime, drug trafficking and public safety threats that have 'overwhelmed local resources.' Rio Arriba County has the highest overdose death rate in the state, the governor's news release said. The troops are helping police with non-law enforcement duties and are not armed, will not make arrests, detain anyone, use force or engage in any immigration-related activities, the city said. 'We understand there are concerns based on what is taking place in other parts of the country, and we want to assure the public that here in Albuquerque, the Guard's role is clearly defined, and focused on support without enforcement,' Police Chief Harold Medina said in a June news release. CNN has contacted the Albuquerque Police Department and the New Mexico National Guard about whether the deployment has been effective but did not receive a response. 'There is no question why the NM National Guard is helping out,' New Mexico National Guard spokesman Hank Minitrez said in a June Facebook post. The post described troops working behind the scenes in police offices, and conducting traffic management and manning perimeters around crime scenes when necessary. Albuquerque officials said last month they saw 'success with targeted resources' in the city's downtown. Shootings are down 20% this year compared with 2024, the city said in a news release, a figure that tracks with data provided to CNN by the governor's office. Grisham, a Democrat, criticized President Donald Trump's deployment of 800 troops in Washington, DC, as 'executive overreach' and said the contrast 'couldn't be clearer' between her state's usage of the National Guard and that of Trump's. The DC National Guard reports only to the president, while a governor acts as the 'commander in chief' of their state's troops and police agencies. Trump has suggested he could do the same in other major Democratic-led cities despite their leaders not asking for help. Meanwhile on the West Coast, questions are still lingering in a court case over the president's deployment of troops to Los Angeles in June as dramatic protests unfolded over immigration enforcement in parts of the city. The visual contrast between the troops in New Mexico and those sent to LA and the capital shows a difference in approach and intent. Grisham's office said the 'key difference' between her deployment of troops and Trump's is her order was in response to direct requests from local communities. 'While President Trump uses the National Guard to trample local leadership, New Mexico brings together local and state governments to make our communities genuinely safer,' she said. California Gov. Gavin Newsom called the federal intervention in his state 'purposely inflammatory.' Washington, DC, Attorney General Brian Schwalb called the president's actions unnecessary and pointed out violent crime in the district reached 30-year lows last year. Trump said he was going to 'look at' taking action in Chicago, New York and Los Angeles because of their crime rates when he announced his plans to take control of DC's police department this week. It is not clear what specifically Trump wants to do in other cities. New York, Los Angeles and Chicago have all seen a sustained decline in crime so far this year, according to a mid-year report from the independent nonpartisan Council on Criminal Justice. It's a 'dangerous precedent' for the federal government to start deploying troops to deal with local and state policing matters, as they are historically used for crowd control, protecting federal property and federal workers, or responding to a natural disaster, according to Jeffrey Swartz, a former National Guard member and professor emeritus at Cooley Law School. The courts in California have yet to address a claim at the center of the case brought by Newsom to block Trump's deployment of troops in the city: whether the troops violated the Posse Comitatus Act, a 19th century law prohibiting the use of the US military for domestic law enforcement. The three-day trial concluded last week, but the judge did not say when he will rule. 'When the president nationalizes a unit or a state National Guard, they now fall under the Posse Comitatus Act saying they are not allowed to be used for civil policing,' said Swartz. 'He cannot authorize federal troops to make arrests. That is solely within the power of the governor.' The National Guard can, however, take someone into custody under circumstances where there's a danger to federal property or federal officers, he added. The act reserves law enforcement functions to the states, but its language is short, which 'lends itself to vagueness and argumentation,' said David Shapiro, lecturer at the John Jay College of Criminal Justice. Swartz said National Guardsmen 'don't like the idea of being on the streets and being put in a position where they might have to use force against fellow citizens.' 'These people are citizen soldiers, not full-time. They have jobs. They have families,' he said. 'They signed up to protect the country against external threats, not internal ones.'
Axios
21 minutes ago
- Axios
Rubio says peace agreement "a long ways off" after Putin summit
Secretary of State Marco Rubio said Sunday that "we're not at the precipice" of a peace agreement after President Trump's Alaska summit with Russian President Vladimir Putin ended without a deal on Russia's war in Ukraine. The big picture: Trump, who Axios previously reported set a ceasefire as the goal of the talks, said "we didn't get there" after the meeting. Rubio on Sunday said both sides would have to make concessions, but refused to name any that Putin agreed to. Now, Ukrainian President Volodymyr Zelensky, joined by several European leaders, will travel to Washington for a potentially difficult meeting with Trump on Monday. Driving the news: Rubio, who made appearances across the Sunday political show lineup, told ABC's Martha Raddatz a ceasefire was not the aim, arguing, "You're not going to reach a ceasefire or peace agreement in a meeting" without Ukraine present. If an agreement isn't reached, Rubio said, there will be consequences — but he emphasized the administration is trying to avoid such measures. Late last month, Trump threatened to shorten Putin's deadline to agree to a ceasefire in Ukraine or face heavy sanctions, which he said would include "secondary sanctions and tariffs." Yes, but: Rubio on Sunday argued that if the U.S. levies additional sanctions, the "talking stops." "If this morning the president woke up and said, 'I'm putting these terrible ... strong sanctions on Russia,' that's fine — [it] may make people feel good for a couple hours," he said on Fox's "Sunday Morning Futures." "But here's what you're basically saying ... talks are over for the foreseeable future." He reiterated that view on NBC's "Meet the Press," saying that he doesn't believe new sanctions would force Putin to accept a ceasefire. "We may very well wind up in that place," he said of new sanctions. "I hope not. Because that means that peace talks failed." The other side: Democrats on Sunday blasted the president over the meeting, which began with a red carpet rollout, and denounced the lack of immediate consequences for Russia. Sen. Chris Murphy (D-Conn.) described the summit as a "great day for Russia" in an interview with NBC's Kristen Welker, saying Putin left with "his photo op with zero commitments made and zero consequences." His Democratic colleague, Sen. Chris Van Hollen (Md.), said on ABC's "This Week" that Trump "got played" by Putin and that "[a]ll the threatened sanctions ... apparently have been set aside." Van Hollen called for the Senate to move ahead on bipartisan legislation that would impose new sanctions on Russia. Catch up quick: Trump, in a Truth Social post after the summit, said the meeting — and a subsequent phone call with Zelensky and European leaders — went "very well." He wrote that it "was determined by all" that a peace agreement, rather than a "mere Ceasefire Agreement" would be the best solution. Zelensky had been adamant that there must be a ceasefire before peace talks, Axios' Barak Ravid reports. The terms that Putin laid out in the summit included that Ukraine cede two of the four regions to which Russia has laid claim and freeze the front lines in the other two, Axios' Barak Ravid and Dave Lawler reported, citing two sources briefed on a call U.S. officials held with other allied leaders. Flashback: Zelensky's Monday trip to Washington comes around six months after Trump's February Oval Office meeting with the Ukrainian leader boiled over into a heated argument. European Commission President Ursula von der Leyen, German Chancellor Friedrich Merz and NATO Secretary General Mark Rutte are all expected to attend the meeting with Zelensky. Friction point: On CBS News' "Face the Nation," Rubio denied that those leaders were joining Zelensky as backup to protect him from being bullied into a deal. "This is such a stupid media narrative; that they are coming here tomorrow because Trump is going to bully Zelensky into a bad deal," he said. "We invited them to come," he added. "The president invited them to come."
