4:10pm: August starts on a down note
Stocks closed sharply lower on Friday, capping a volatile week with broad declines across major indexes as investors weighed earnings, interest rate risks, and economic data.
The Nasdaq Composite led the retreat, falling 2.2% to 20,650, as technology stocks bore the brunt of the selling pressure. The S&P 500 dropped 1.6% to 6,238, while the Dow Jones Industrial Average shed 542 points, or 1.2%, to finish at 43,589. Small caps also suffered, with the Russell 2000 down 2% to 2,168.
The losses followed a string of mixed earnings reports and renewed concerns that the Federal Reserve may keep interest rates elevated for longer than expected.
3:25pm: Proactive news headlines
- U.S. Global Investors CEO Frank Holmes says a sweeping executive order designating AI infrastructure as critical to U.S. interests could spark a transformational era akin to the Space Race or shale boom.
- Century Lithium Corp. raised about C$2.87 million through the first tranche of a financing round to support its lithium development projects amid surging demand.
- Sona Nanotech Inc. launched its first human clinical trial for a targeted hyperthermia therapy aimed at turning immune-resistant tumors into ones that respond to treatment.
- Orosur Mining Inc. announced that Newmont Corporation has sold its 9.40% stake in the company to institutional investors as part of a broader divestment strategy.
- 88 Energy Ltd. reported that 1,419 shareholders opted to retain a total of 10.35 million shares under its Small Holding Sale Facility.
2:30pm: Stocks on the move
- Coinbase Global Inc shares dropped nearly 15% after second-quarter earnings and trading revenue came in well below expectations, with EPS at $0.12 versus estimates of $1.49.
- Moderna Inc shares slid almost 9% as a reduced 2025 revenue outlook and job cuts overshadowed stronger-than-expected second-quarter earnings.
- Reddit Inc shares soared over 17% in premarket trading after its second-quarter results far exceeded expectations, with revenue jumping 78% year-over-year to $500 million.
1:25pm: Tech rout deepens
US stocks stayed in the red Friday afternoon, on track to cap a volatile week as rising interest rate worries and weak economic data sent investors fleeing risk assets.
The Dow Jones Industrial Average dropped 1.5%, while the S&P 500 lost 1.8%. The tech-heavy Nasdaq tumbled 2.4%, suffering its worst single-day decline in nearly three months.
Despite the steep selloff, some technical levels remain intact.
“The S&P 500 is still holding over key support at the 50-day moving average,” said Larry Tentarelli, Chief Technical Strategist for Blue Chip Daily Trend Report. “A bounce keeps the trend alive; a break could trigger a deeper pullback. Powell’s next move just got a lot more complicated.”
12:15pm: Weaker markets hit hard
Chris Beauchamp, Chief Market Analyst at IG, said a disappointing US jobs report added to the downward pressure on stocks already shaken by tariff concerns.
“Given how markets had been trading this morning after the tariff news, it would have taken a very solid payroll report to avoid further losses. As it was, today’s dismal number did nothing for sentiment,” Beauchamp said, adding that the sharp downward revisions to previous months' data worsened the mood.
The IG analyst noted US small-cap Russell 2000 is leading declines. “In selloffs, the heaviest losses are often seen in those markets that were the weakest on the way up,” he said.
11:25am: Manufacturing, consumer sentiment weaken
The US manufacturing sector showed further signs of contraction in July, with the ISM Manufacturing Index falling to 48.0, below expectations of 49.5 and down from June's 49.0.
A reading below 50 indicates shrinking activity.
Key components of the report also came in soft. New orders edged up slightly to 47.1 (Est. 48.7), while the employment index dropped to 43.4, down from 45.0. Price pressures moderated, with the prices paid index falling to 64.8, well below the 70.0 consensus and June’s 69.7.
Separately, the University of Michigan's final reading on consumer sentiment for July ticked down to 61.7 (Est. 62.0) from a preliminary 61.8. The expectations gauge fell to 57.7, while current conditions improved to 68.0.
Inflation expectations edged higher in the short term, with the 1-year outlook rising to 4.5% from 4.4%. Long-run inflation expectations eased to 3.4% from 3.6%.
11:05am: Hiring revisions raise alarm
The July jobs report revealed “clear signs of weakness” in the labor market, according to analysts at Wells Fargo, casting doubt on the FOMC’s recent assessment that conditions remain solid.
While nonfarm payrolls rose by just 73,000 in July, the more troubling signal came from steep downward revisions to prior months’ data, bringing the three-month average payroll gain to just 35,000. “In short, hiring was not as stable as previously thought,” the analysts wrote, noting broad-based softness across industries including manufacturing, retail, and professional services.
Despite the disappointing employment data, Wells Fargo maintained its forecast for three 25 basis point rate cuts in September, October, and December, citing a balance between downside labor market risks and upside inflation risks.
“Given both the downside risks to the Fed's employment mandate and the upside risks to inflation, we think the Committee will move monetary policy toward a more neutral stance in the coming months to better reflect the two-way risks to the economy,” they noted.
Still, the firm cautioned that the debate over a September rate cut is far from settled, with another jobs report and two inflation readings due before the next FOMC decision.
10:20am: Amazon stays cautious
investors headed for the exit after Amazon issued cautious guidance for the upcoming quarter, wiping a staggering $184 billion off the e-commerce giant’s market value in after-hours trading.
Shares of the eCommerce giant were down over 6% on Friday morning.
While the headline numbers look strong, the company’s careful stance on future profits, intensifying competition in cloud computing, and ballooning spending on artificial intelligence have left markets feeling jittery.
Amazon projected third-quarter operating income at $15.5 billion to $20.5 billion, below the market’s expectation of nearly $19.5 billion. The cautious tone overshadowed the impressive quarterly numbers.
What's more, investors are concerned by AWS’s slowing growth relative to rivals Microsoft Azure (up 39%) and Google Cloud (up 32%).
9:45am: Tech leads market slide
Wall Street stumbled out of the gate Friday after a surprisingly weak July jobs report and a barrage of new Trump-era tariffs rekindled economic and geopolitical uncertainty.
The Dow Jones Industrial Average dropped 547 points, or 1.2%, to 43,584, while the S&P 500 sank 1.2% to 6,261. The Nasdaq Composite, weighed down by tech names, fell 1.6% to 20,776. Small caps weren’t spared either, with the Russell 2000 losing 0.9%.
The selling picked up after the US economy added just 73,000 jobs in July, well short of economists’ 104,000 forecast. To make matters worse, job gains from May and June were revised sharply lower, with May’s figure slashed to just 19,000 from 144,000, and June’s revised down to 14,000 from 147,000, a staggering reversal that points to mounting labor market weakness.
The unemployment rate ticked up to 4.2%, in line with estimates. Market-based rate expectations quickly reacted: odds for a September rate cut climbed, with Polymarket traders now pricing in a renewed likelihood of Fed action.
President Trump wasted no time weighing in, posting on Truth Social: “Jerome ‘Too Late’ Powell is a disaster. DROP THE RATE!”
Meanwhile, Trump’s latest executive order lit another fire under markets. The new trade directive slaps tariffs ranging from 10% to 41%, including a 35% hike on Canadian imports, with further penalties for transshipped goods.
And in the world of Big Tech, Apple CEO Tim Cook said the company plans to “significantly grow” its AI investment, following last night’s earnings release. According to Bloomberg, Apple has internally floated M&A targets like Perplexity and Mistral, suggesting it's ready to make bold moves to accelerate its AI roadmap.
8:45am: Job growth slows in July
The US economy added just 73,000 jobs in July, far short of the 104,000 economists had expected, pointing to a cooling labor market. The unemployment rate ticked up to 4.2%, in line with forecasts.
Wage growth remained steady, with average hourly earnings rising 0.3% month-over-month and 3.9% from a year earlier, slightly above the 3.8% annual pace projected.
Adding to signs of labor market softening, job gains from previous months were revised down sharply. May’s nonfarm payrolls were cut to 19,000 from 144,000, while June’s total was lowered to 14,000 from 147,000.
The latest report follows ADP’s private payrolls data on Wednesday, which showed a better-than-expected gain of 104,000 jobs in July, up from a loss of 23,000 in June and offering a mixed picture of employment trends.
8:00am: Stocks set for sharp fall
Wall Street is likely to open sharply lower as August trading gets underway after US President Donald Trump signed an executive order outlining a new set of tariffs on the eve of the August 1 deadline, including a 35% tariff on Canadian goods, up from 25%.
That's taken the spotlight off of earnings from Apple Inc (NASDAQ:AAPL, ETR:APC) and Amazon.com Inc (NASDAQ:AMZN) after the closing bell on Thursday.
Nasdaq futures signalled a 1.1% decline for the tech-heavy index when trading gets underway in an hour and a half, with those for the Dow Jones and the S&P 500 0.9% and 1% lower respectively.
Also weighing on the Nasdaq, Amazon's shares sank 8% in pre-market trading after it disappointed investors with its outlook statement and slower growth in its cloud division, Amazon Web Services. Apple's shares were up 2% pre-market after it posted third-quarter revenue of $94 billion, up 10%, and quarterly diluted earnings per share of $1.57, up 12% year-over-year.
Just hours before the August 1 tariff deadline, President Trump signed an executive order introducing new tariffs, including a 10% global minimum and at least 15% for countries running trade surpluses with the US.
Newly revealed rates include 39% on Switzerland and 20% on Taiwan. These tariffs take effect after August 7, allowing time for technical implementation and potentially enabling further trade negotiations with affected countries before enforcement begins.
The move marks a significant shift in US trade policy, aimed at reshaping trade balances, with global economic implications likely to emerge as countries assess their next steps.
“Equity markets were flashing red as Trump’s tariff regime hits another milestone,” says Russ Mould, investment director at AJ Bell. “Investors have been caught off guard, having previously hoped Trump would kick the new tariff levels down the road pending further negotiations with foreign trade partners. Instead, we’ve got new rates galore and that means investors need to spend time understanding what that means for companies in their portfolio.
Mould noted that the fact Trump hadn’t "chickened" out and pushed back the August 1 deadline to September 1 had soured the tone on the markets.
"Europe and Asia were in a grumpy mood and futures prices imply Wall Street will follow suit later today," he added.“We haven’t had a repeat of the sharp market sell-off seen immediately after the 2 April Liberation Day speech. However, it’s fair to say there is a broad negative tone at the end of the trading week and recent upwards market momentum has evaporated.