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Nikkei Asia
an hour ago
- Business
- Nikkei Asia
US stocks sell off on latest tariffs, soft jobs data
NEW YORK (Reuters) -- U.S. stocks slumped on Friday, and the S&P suffered its biggest daily percentage decline in more than two months as new U.S. tariffs on dozens of trading partners and a surprisingly weak jobs report spurred selling pressure. Also weighing on equities was an 8.3% tumble in shares after the company posted quarterly results but failed to meet lofty expectations for its Amazon Web Services cloud computing unit. Just hours before the tariff deadline on Friday, President Donald Trump signed an executive order imposing duties on U.S. imports from countries, including Canada, Brazil, India and Taiwan, in his latest round of levies as countries attempted to seek ways to reach better deals. Further denting confidence in the economic picture, data showed U.S. job growth slowed more than expected in July while the prior month's report was revised sharply lower, indicating the labor market may be starting to crack. The report significantly pushed up expectations the Federal Reserve will cut interest rates at its September meeting. "There's no way to pretty-up this report. Previous months were revised significantly lower where the labor market has been on stall-speed," said Brian Jacobsen, Chief Economist at Annex Wealth Management in Menomonee Falls, Wisconsin. "Last year the Fed messed up by not cutting in July so they did a catch-up cut at their next meeting. They'll likely have to do the same thing this year." Market expectations the Fed will cut rates by at least 25 basis points at its September meeting stood at 86.5%, according to CME's FedWatch Tool, up from 37.7% in the prior session. The Dow Jones Industrial Average fell 542.40 points, or 1.23%, to 43,588.58, the S&P 500 lost 101.38 points, or 1.60%, to 6,238.01 and the Nasdaq Composite lost 472.32 points, or 2.24%, to 20,650.13. The S&P 500 recorded its biggest single-day percentage decline since May 21 while the Nasdaq suffered its biggest daily percentage drop since April 21. For the week, the S&P 500 fell 2.36%, the Nasdaq declined 2.17%, and the Dow fell 2.92%. The CBOE Volatility Index, also known as Wall Street's fear gauge, closed up 3.66 points at 20.38, its highest close since June 20. Amazon was the biggest drag on the Dow, S&P 500 and Nasdaq and pushed the consumer discretionary index down nearly 3.6% as the worst performing of the 11 major S&P 500 sectors. Also reporting earnings was Apple, which lost 2.5% after it posted a 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. Stocks briefly extended declines after Trump said he ordered the commissioner of the U.S. Bureau of Labor Statistics, Erika L. McEntarfer, to be fired in the wake of the jobs data. "(Trump) didn't seem to be disappointed with the last five jobs reports," said Art Hogan, Chief Market Strategist, B. Riley Wealth, Boston, saying that the firing stood out as irregular. "I think this is clearly something that happens in dictatorships, not in democracies." The Federal Reserve said Governor Adriana Kugler is resigning early from her term and will exit the central bank on Aug. 8, enabling President Donald Trump to select a new governor as he has ramped up pressure against Chair Jerome Powell recently to cut interest rates. Declining issues outnumbered advancers by a 2.17-to-1 ratio on the NYSE, and by a 2.69-to-1 ratio on the Nasdaq. The S&P 500 posted eight new 52-week highs and 29 new lows, while the Nasdaq Composite recorded 29 new highs and 202 new lows. Volume on U.S. exchanges was 19.51 billion shares, compared with the 18.44 billion average for the full session over the last 20 trading days.
Time of India
3 days ago
- Business
- Time of India
Nasdaq posts record closing high with tech gains, rate cut optimism
Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads U.S. stocks ended higher and the Nasdaq notched a record closing high for the second straight day on Friday as technology-related shares, including Apple, gained and as investors were optimistic about potential interest rate cuts The three major indexes also registered solid gains for the shares climbed 4.2% on Friday and were up 13.3% for the week in their biggest weekly percentage gain since 2020. U.S. President Donald Trump on Wednesday said Apple would invest an additional $100 billion in the U.S., bringing its total commitment to $600 billion over the next four S&P 500 technology and communication services indexes led sector gains for the S&P 500 on Friday and the indexes also posted record high helping the S&P 500, shares of Gilead Sciences jumped 8.3% after it raised its full-year financial weaker economic data has underpinned expectations for rate cuts, while investors are evaluating Trump's interim pick for a Federal Reserve president late in Thursday's session nominated Council of Economic Advisers Chair Stephen Miran to a short-term board seat following Adriana Kugler's abrupt exit last week, as he narrowed his shortlist to succeed Fed Chair Jerome Powell, whose term ends on May who is often aligned with Trump, has previously suggested Powell was "too late" in lowering rates."There are certainly investors who think if the Fed is going to cut rates then the overarching theme is, don't fight the Fed on lower rates," said Rick Meckler, partner at Cherry Lane Investments, a family investment office in New Vernon, New Jersey."The other side of the equation has really been the tariffs, and how the tariffs turn out remains uncertain."Expectations for a rate cut of at least 25 basis points by the Fed at its September meeting stand at 89.4%, according to CME's FedWatch Tool, up from 80.3% a week ago. Futures are pointing to at least two cuts by higher tariffs on imports from dozens of countries kicked in this Dow Jones Industrial Average rose 206.97 points, or 0.47%, to 44,175.61, the S&P 500 gained 49.45 points, or 0.78%, to 6,389.45 and the Nasdaq Composite gained 207.32 points, or 0.98%, to 21, was the Nasdaq's 18th record closing high for 2025, with the index now up about 11% for the year so far. The S&P 500 ended just shy of a record closing the week, the S&P 500 rose 2.4%, the Dow gained 1.3% and the Nasdaq climbed 3.9%.A look at inflation trends will test the U.S. stock market's rally in the coming week, with some investors saying equities could be set for a pullback. The monthly U.S. consumer price index report is due on also are monitoring U.S.-India trade relations as New Delhi shelved fresh U.S. arms and aircraft purchases, according to three Indian officials, after Trump hiked tariffs on Indian exports to 50% this other gainers Friday, shares of Expedia rose 4.1% after the company raised its annual forecast for gross bookings and revenue results in now from more than 450 of S&P 500 companies, estimated earnings growth for the second quarter was at 13.2% on Friday, up from 5.8% on July 1, according to issues outnumbered decliners by a 1.37-to-1 ratio on the NYSE. There were 272 new highs and 88 new lows on the the Nasdaq, 2,442 stocks rose and 2,157 fell as advancing issues outnumbered decliners by a 1.13-to-1 on U.S. exchanges was 16.18 billion shares, compared with the 18.27 billion average for the full session over the last 20 trading days.
Business Times
3 days ago
- Business
- Business Times
US: Nasdaq posts record closing high with tech gains, rate cut optimism
[NEW YORK] US stocks ended higher and the Nasdaq notched a record closing high for the second straight day on Friday (Aug 8) as technology-related shares, including Apple, gained and as investors were optimistic about potential interest rate cuts. The three major indices also registered solid gains for the week. Apple shares climbed 4.2 per cent on Friday and were up 13.3 per cent for the week in their biggest weekly percentage gain since 2020. US President Donald Trump on Wednesday said Apple would invest an additional US$100 billion in the US, bringing its total commitment to US$600 billion over the next four years. The S&P 500 technology and communication services indices led sector gains for the S&P 500 on Friday and the indices also posted record high closes. Also helping the S&P 500, shares of Gilead Sciences jumped 8.3 per cent after it raised its full-year financial outlook. Recent weaker economic data has underpinned expectations for rate cuts, while investors are evaluating Trump's interim pick for a Federal Reserve governor. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The president late in Thursday's session nominated Council of Economic Advisers Chair Stephen Miran to a short-term board seat following Adriana Kugler's abrupt exit last week, as he narrowed his shortlist to succeed Fed chair Jerome Powell, whose term ends on May 15. Miran, who is often aligned with Trump, has previously suggested Powell was 'too late' in lowering rates. 'There are certainly investors who think if the Fed is going to cut rates then the overarching theme is, don't fight the Fed on lower rates,' said Rick Meckler, partner at Cherry Lane Investments, a family investment office in New Vernon, New Jersey. 'The other side of the equation has really been the tariffs, and how the tariffs turn out remains uncertain.' Expectations for a rate cut of at least 25 basis points by the Fed at its September meeting stand at 89.4 per cent, according to CME's FedWatch Tool, up from 80.3 per cent a week ago. Futures are pointing to at least two cuts by year-end. Trump's higher tariffs on imports from dozens of countries kicked in this week. The Dow Jones Industrial Average rose 206.97 points or 0.5 per cent to 44,175.61, the S&P 500 gained 49.45 points or 0.8 per cent to 6,389.45 and the Nasdaq Composite gained 207.32 points or 1 per cent to 21,450.02. It was the Nasdaq's 18th record closing high for 2025, with the index now up about 11 per cent for the year so far. The S&P 500 ended just shy of a record closing finish. For the week, the S&P 500 rose 2.4 per cent, the Dow gained 1.3 per cent and the Nasdaq climbed 3.9 per cent. A look at inflation trends will test the US stock market's rally in the coming week, with some investors saying equities could be set for a pullback. The monthly US consumer price index report is due on Tuesday. Investors also are monitoring US-India trade relations as New Delhi shelved fresh US arms and aircraft purchases, according to three Indian officials, after Trump hiked tariffs on Indian exports to 50 per cent this week. Among other gainers Friday, shares of Expedia rose 4.1 per cent after the company raised its annual forecast for gross bookings and revenue growth. With results in now from more than 450 of S&P 500 companies, estimated earnings growth for the second quarter was at 13.2 per cent on Friday, up from 5.8% on July 1, according to LSEG. Advancing issues outnumbered decliners by a 1.37-to-1 ratio on the New York Stock Exchange. There were 272 new highs and 88 new lows. On the Nasdaq, 2,442 stocks rose and 2,157 fell as advancing issues outnumbered decliners by a 1.13-to-1 ratio. Volume on US exchanges was 16.18 billion shares, compared with the 18.27 billion average for the full session over the last 20 trading days. REUTERS
NBC News
3 days ago
- Business
- NBC News
Nasdaq posts record closing high with tech gains, rate cut optimism
U.S. stocks ended higher and the Nasdaq notched a record closing high for the second straight day on Friday as technology-related shares, including Apple, gained and as investors were optimistic about potential interest rate cuts. The three major indexes also registered solid gains for the week. Apple shares climbed 4.2% on Friday and were up 13.3% for the week in their biggest weekly percentage gain since 2020. U.S. President Donald Trump on Wednesday said Apple would invest an additional $100 billion in the U.S., bringing its total commitment to $600 billion over the next four years. The S&P 500 technology and communication services indexes led sector gains for the S&P 500 on Friday and the indexes also posted record high closes. Also helping the S&P 500, shares of Gilead Sciences jumped 8.3% after it raised its full-year financial outlook. Recent weaker economic data has underpinned expectations for rate cuts, while investors are evaluating Trump's interim pick for a Federal Reserve governor. The president late in Thursday's session nominated Council of Economic Advisers Chair Stephen Miran to a short-term board seat following Adriana Kugler's abrupt exit last week, as he narrowed his shortlist to succeed Fed Chair Jerome Powell, whose term ends on May 15. Miran, who is often aligned with Trump, has previously suggested Powell was 'too late' in lowering rates. 'There are certainly investors who think if the Fed is going to cut rates then the overarching theme is, don't fight the Fed on lower rates,' said Rick Meckler, partner at Cherry Lane Investments, a family investment office in New Vernon, New Jersey. 'The other side of the equation has really been the tariffs, and how the tariffs turn out remains uncertain.' Expectations for a rate cut of at least 25 basis points by the Fed at its September meeting stand at 89.4%, according to CME's FedWatch Tool, up from 80.3% a week ago. Futures are pointing to at least two cuts by year-end. Trump's higher tariffs on imports from dozens of countries kicked in this week. The Dow Jones Industrial Average rose 206.97 points, or 0.47%, to 44,175.61, the S&P 500 gained 49.45 points, or 0.78%, to 6,389.45 and the Nasdaq Composite gained 207.32 points, or 0.98%, to 21,450.02. It was the Nasdaq's 18th record closing high for 2025, with the index now up about 11% for the year so far. The S&P 500 ended just shy of a record closing finish. For the week, the S&P 500 rose 2.4%, the Dow gained 1.3% and the Nasdaq climbed 3.9%. A look at inflation trends will test the U.S. stock market's rally in the coming week, with some investors saying equities could be set for a pullback. The monthly U.S. consumer price index report is due on Tuesday. Investors also are monitoring U.S.-India trade relations as New Delhi shelved fresh U.S. arms and aircraft purchases, according to three Indian officials, after Trump hiked tariffs on Indian exports to 50% this week. Among other gainers Friday, shares of Expedia rose 4.1% after the company raised its annual forecast for gross bookings and revenue growth. With results in now from more than 450 of S&P 500 companies, estimated earnings growth for the second quarter was at 13.2% on Friday, up from 5.8% on July 1, according to LSEG. Advancing issues outnumbered decliners by a 1.37-to-1 ratio on the NYSE. There were 272 new highs and 88 new lows on the NYSE. On the Nasdaq, 2,442 stocks rose and 2,157 fell as advancing issues outnumbered decliners by a 1.13-to-1 ratio. Volume on U.S. exchanges was 16.18 billion shares, compared with the 18.27 billion average for the full session over the last 20 trading days.
Mint
3 days ago
- Business
- Mint
US yields climb as investors look toward data
Stephen Miran nominated to Federal Reserve board JPMorgan pulls forward Fed cut expectation September Fed cut expectations near 90% (Updates to afternoon US trading) NEW YORK, Aug 8 (Reuters) - U.S. Treasury yields rose on Friday, with that of the benchmark 10-year note set for its first weekly gain in three weeks after a series of lackluster auctions ahead of next week's inflation data. Yields have been choppy throughout the week, moving lower on economic data that indicated little movement in the labor market, while a services sector report hinted at a rekindling of inflationary pressures. Yields turned higher later in the session as the Treasury saw weak demand for a total of $125 billion in 3-year notes, 10-year notes and 30-year bonds. The 10-year yield recorded its biggest weekly drop in two months last week, after a soft government payrolls report sharply increased expectations on the timing and amount of rate cuts from the Federal Reserve this year. Data next week will include multiple readings on inflation, including the consumer price index (CPI), which will heavily influence rate expectations for the central bank. The benchmark U.S. 10-year Treasury note yield rose 3.9 basis points to 4.283% and was up 6.5 basis points on the week, on track for its biggest weekly gain since early July. "We probably came down as far as we're likely to, unless we get really much weaker data, and so our call is we stall at 4.25%, said Jay Hatfield, CEO of Infrastructure Capital Management in New York. "It's normal for this to back up, because we don't know what CPI is going to be," said Hatfield, who also cited the uncertainty surrounding the makeup of the Federal Reserve board of governors. The yield on the 30-year bond rose 4.1 basis points to 4.853% and was up 4.9 basis points on the week after two straight weekly declines. Expectations for a rate cut of at least 25 basis points by the Fed at its September meeting stand at 89.4%, according to CME's FedWatch Tool, up from 80.3% a week ago. According to LSEG data, the market is pricing in 58.3 basis points of cuts by the end of the year. St. Louis Fed President Alberto Musalem said on Friday the Fed's inflation and jobs goals both face risks, with policymakers needing to balance which seems the more serious threat in deciding whether it is appropriate to reduce rates. A closely watched part of the U.S. Treasury yield curve measuring the gap between two- and 10-year Treasury notes , seen as an indicator of economic expectations, was at a positive 52.5 basis points. U.S. President Donald Trump on Thursday said he will nominate Council of Economic Advisers Chairman Stephen Miran to serve out the final few months of a newly vacant seat at the Fed while the White House seeks a permanent addition to the central bank's governing board and continues its search for a new Fed chair. Miran is replacing Fed Governor Adriana Kugler, who announced a surprise resignation last week, effective on Friday. In a note to clients, JPMorgan chief U.S. economist Michael Feroli said he now expects the Fed to cut interest rates by 25 basis points at its September meeting, citing signs of weakness in the labor market and uncertainty around Miran's nomination. The two-year U.S. Treasury yield, which typically moves in step with interest rate expectations, advanced 2.2 basis points to 3.756% and was up 5.8 basis points on the week, on pace for its biggest weekly gain since the week ending July 3. (Reporting by Chuck Mikolajczak; Editing by David Holmes and Richard Chang)
