Wall St set for weak start on Trump tariffs, Amazon results, soft payrolls
Hours ahead of the tariff deadline, President Donald Trump signed an executive order imposing duties ranging from 10% to 41% on U.S. imports from countries including Canada, Brazil, India and Taiwan.
A Labor Department report showed the U.S. economy added less-than-expected 73,000 jobs in July, pointing to a sharp moderation in the labor market amid trade uncertainties.
The unemployment rate stood at 4.2%, in line with expectations.
"This was a pretty disappointing report ... markets are getting a little bit more worried about the state of the labor market in the aftermath of today's report," said BeiChen Lin, senior investment strategist at Russell Investments.
The data forced traders to raise their bets for a September interest rate cut to 62.9% from 41.2% earlier in the day, according to CME's FedWatch tool.
At 8:47 a.m. ET, Dow E-minis were down 354 points, or 0.8%, S&P 500 E-minis were down 58 points, or 0.92%, and Nasdaq 100 E-minis were down 249 points, or 1.08%.
The CBOE Volatility index (.VIX), opens new tab, also known as Wall Street's fear gauge, jumped to a more than two-week high and was last up 18.18 points.
Earlier in the week, stronger-than-expected second-quarter GDP report and an uptick in June inflation that influenced expectations on the rate path.
Trump said on Friday the Federal Reserve's board should assume control if Chair Jerome Powell continues to refuse to lower interest rates.
Fed Chair Jerome Powell, despite pressure from Trump to cut rates, has indicated the central bank was in no rush to do so.
Meanwhile, Amazon (AMZN.O), opens new tab slid 8.3% in premarket trading after growth in its cloud computing unit failed to impress investors, in contrast to robust gains reported by AI-focused rivals Alphabet (GOOGL.O), opens new tab and Microsoft (MSFT.O), opens new tab.
Apple (AAPL.O), opens new tab posted its current-quarter revenue forecast well above Wall Street estimates, but CEO Tim Cook warned U.S. tariffs would add $1.1 billion in costs over the period. The stock was up 1.5%.
On Thursday, the S&P 500 (.SPX), opens new tab and the Nasdaq (.IXIC), opens new tab retreated from intraday record highs to end lower as AI-driven enthusiasm following blockbuster earnings from Microsoft and Meta Platforms (META.O), opens new tab fizzled out.
Microsoft briefly surpassed $4 trillion in market value, becoming only the second publicly traded company to reach this milestone after Nvidia (NVDA.O), opens new tab.
In other earnings-related moves, Coinbase Global (COIN.O), opens new tab shed 11.1% after the crypto exchange reported a drop in adjusted profit for the second quarter, marred by weaker trading activity amid reduced cryptocurrency volatility.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Daily Mail
28 minutes ago
- Daily Mail
FLOURISHING AFTER 50: I've found love again - but now my kids are worried they'll lose their inheritance
Dear Vanessa, I never thought I'd be writing to you, but here I am at 56, divorced for 10 years, and finally with a man who makes me feel alive again. We met on a hiking trip, and it's been wonderful – until we started talking about moving in together. He wants us to sell our homes and buy something new. I have more equity, so naturally, I'd be putting in more. My kids are worried I'll lose their inheritance if things don't work out. He thinks I'm overthinking it and that love means trusting each other. After everything I've been through, I just want to protect myself and my future. But I don't want money fears to ruin what could be the best chapter of my life. How do couples in their 50s blend finances without breaking their relationship? Wishing for guidance, Linda. Linda, congratulations on finding love again. Many people in their 50s believe that part of their life is over, so it's wonderful you've found happiness. You're also wise to pause and think before making big financial moves. Love is about trust, but later-in-life relationships often come with complex money matters that need clear agreements. When you've spent decades building your assets and raising children, combining finances isn't as simple as when you were younger. A co-habitation or prenuptial agreement can outline exactly what would happen if you separated. Far from being unromantic, it creates confidence that both of you will be treated fairly, allowing you to enjoy the relationship without financial anxiety hanging over you. If you decide to buy a home together, you don't need to split ownership 50/50. Many couples use arrangements where each person owns a percentage of the property that matches what they've contributed. This also allows you to leave your share to your children rather than it automatically passing to your partner if something happens to you. It's one of the most effective ways to protect family inheritance while still buying together. At 56, your pension and retirement savings are key to your long-term security. Putting too much of your equity into a shared home may leave you with less flexibility later to invest, increase your pension contributions, or cover healthcare needs. While your main home usually isn't counted in means-tested benefits, locking up most of your wealth in property can limit your options if life changes. Keeping some money separate can help you maintain independence and peace of mind well into your 70s and beyond. Money can be an uncomfortable topic, especially after divorce, but having open and calm conversations now is crucial. A financial adviser who understands blended families can model different scenarios for you – whether you keep separate homes, buy together equally, or use different ownership shares – so you can see exactly what's at stake. If you don't have an adviser, you can use my free service to find one who's right for you here. With professional advice and the right agreements in place, you can protect your children's inheritance, safeguard your retirement, and still build a secure and happy future with your new partner. Wishing you happiness and peace of mind,
Daily Mail
28 minutes ago
- Daily Mail
Snooty Nantucket residents outraged over new chain store opened on ritzy billionaire's island
Snooty Nantucket residents furious over the arrival of a chain store on their ritzy island are demanding its closure. Roller Rabbit, a pricey, high-end sleepwear brand with a dozen locations nationwide, opened its latest shop earlier this year, right in the heart of Nantucket's upscale downtown, according to Nantucket Current. But its arrival has sparked a ferocious backlash, as it directly violates the island's fiercely defended ban on franchises in the downtown area. Despite being ordered to 'immediately cease all business activity' on the affluent Massachusetts island, the boutique defiantly kept its doors open - making subtle changes in a bid to dodge the ban. The ban - officially called the Formula Business Restriction - is a town bylaw designed to preserve Nantucket's historic charm and shield local businesses from being drowned out by national and international retail chains. 'The proliferation of formula businesses will have a negative impact on the island's economy, historical relevance and unique character and economic vitality,' Nantucket Book Partners owner Wendy Hudson told the outlet. 'These uses are therefore prohibited in order to maintain a unique retail and dining experience. 'Formula businesses frustrate this goal by detracting from the overall historic island experience and threatening its tourist economy.' The ban - officially called the Formula Business Restriction - is a town bylaw designed to preserve Nantucket's historic downtown charm and shield local businesses from being drowned out by national and international retail chains Ritzy residents overwhelmingly supported the ban nearly a decade ago, worried that recognizable stores would erode the island's independent vibe and turn it into a cookie-cutter shopping destination. Building Commissioner Paul Murphy issued Roller Rabbit a cease-and-desist order in July, marking the first-ever enforcement of the ban. 'The overlay district does not allow standardized businesses in the historic downtown area,' Murphy wrote to the boutique's owners, as reported by Nantucket Current. 'Roller Rabbit meets the definition of a formula business. You are hereby ordered to immediately cease all business activity at this location.' The order stated that the shop met all the criteria to be considered a formula business - having ten or more locations worldwide and standardized elements like a common name, logo or product line. Determined to stay on the billionaire's oasis, Roller Rabbit quickly jumped through hoops to skirt to rules - changing its name and revamping the store's offerings. Now rebranded as The General Store by RR, the boutique has expanded its inventory to include brands like Lands' End, Dempsey & Carroll, Minnow and Long Wharf Supply Co. 'We've evolved our Centre Street seasonal pop-up into a new multi-brand concept,' Roller Rabbit Chief Marketing Officer Carolyn Phillips told the Current via email. 'This reimagined space features a curated selection of products not only from Roller Rabbit, but also from beloved brands that align with the spirit and lifestyle of Nantucket,' she added. Nantucket Planning and Land Use Services (PLUS) director Leslie Snell said the ban does not apply to pop-ups, which is what Roller Rabbit now claims to be. 'The formula business bylaw applies to any business within the overlay district regardless of duration,' she told the outlet. However, the PLUS team doesn't routinely screen every new business for chain store compliance, they only step in when a business asks for a review, leaving enforcement largely driven by self-reporting or complaints. 'No town permits are required for retail stores, so there isn't an opportunity for advance review,' Snell added. 'We review for compliance based on complaints or our own observations.' Roller Rabbit is known for its high-end women's sleepwear, often distinguished by whimsical prints - monkeys, florals and vibrant color palettes being just a few. Shoppers can expect Roller Rabbit pajamas priced from approximately $128 to $148 or more, according to the website. Each set is crafted in small batches from luxe Pima cotton and adorned with artisanal touches like block prints and embroidery. While critics balk at the steep prices, loyal fans point to the heirloom quality and distinctive designs as justification for the splurge - though it remains to be seen how many new customers will be secured on Nantucket.
Daily Mail
28 minutes ago
- Daily Mail
HAMISH MCRAE: New Trump tariffs spoil the party
Donald Trump has proved a bit of a party pooper. There we were last week, celebrating strong results from Microsoft and other members of the 'magnificent seven' clan, plus some decent figures here from several of our biggest enterprises, and pretty spectacular ones from Rolls-Royce. The S&P 500 and FTSE 100 indexes of leading shares touched all-time highs. Trade negotiations seemed to be plodding along, with a decent deal between the US and the EU, even if businesses on the Continent were upset that it wasn't as good as the agreement that we in the UK got. Then, bang, the full list of tariffs was announced, coming into effect on Thursday for any country that had not closed a trade deal with the US. It includes some beefy figures. Switzerland was stunned to discover that it would be hit by a 39 per cent levy. You may not feel sorry for what is one of the richest countries in the world but it's rough on others. For example, South Africa gets 30 per cent and India 25 per cent. These figures will almost certainly be negotiated down and there are all sorts of exceptions. But meanwhile there is huge disruption. Until the end of last week the view of the markets was that global business was nimble enough to cope. Now they are not so confident. And it isn't only the Swiss enterprises that are being hit; it is also American ones. You see that best in the impact on Amazon. It produced some stunning results on Thursday and the shares were trading around their all-time high, valuing the company at well over $2.5 trillion (£1.9 trillion). Then came the details of the tariffs. Its share price fell by more than 7 per cent. It's silly to read too much into one day's market movement, but it's a useful reminder that Americans are being hit by Trump's trade policy, not just foreigners. We don't know how the cost of the tariffs will be carried. Some may be absorbed by exporters. But they can only do that for a while as we have seen when there are sharp currency movements. If the dollar suddenly weakens and they therefore receive less money in their own currency, exporters to the US eventually will have to increase their prices. What we do have is a feel for the extra revenue the US expects to receive. Scott Bessent, the Treasury secretary, estimates it will be an extra $300 billion a year. That's equivalent to about 1 per cent of national output. If a third of that ends up being paid by importers squeezing their margins and two-thirds by consumers in higher prices, that's a noticeable dent on living standards. Some items will go up by a big amount, and while many won't, the headlines will shock. The tax revenue will be useful, of course, but as the US federal budget deficit is running at 6 per cent of national output, it doesn't go far towards closing the gap. What happens next? Disruption is never good and even if, as seems realistic, world trade does settle down, there will be lasting costs from the tariff war. What will matter even more is whether, irrespective of all this, the US economy continues to grow at a decent clip. It managed to do so in the second quarter, at an annual rate of 3 per cent. But there are worries. Every time there's a weak number, as there was on Friday with jobs growth, the markets wobble. The housing market has gone soft in many areas. Consumer sentiment is fragile, though up a little in recent months thanks to booming share prices. So markets need to stay strong to maintain consumer confidence – and vice versa. It's a virtuous circle, but as we all know, that could flip. You can see why Trump is so hostile to the Federal Reserve chairman, Jerome Powell. The one thing that might ensure the boom continues a while longer would be a cut in interest rates. The Fed didn't move last week, while here the Bank of England is widely expected to reduce rates on Thursday. It was a stunning July for British investors and shares here remain solid value compared with US markets. The UK will probably gain from US tariffs, given the favourable deal we negotiated. But August will, I am afraid, be a less comfortable month.
