US Stocks Decline as Weak Jobs Data and New Tariffs Weigh on Markets

US stock futures declined on Friday as investors reacted to weaker-than-expected employment data and newly announced tariff increases from President Donald Trump. Dow Jones Industrial Average futures dropped by 452 points, or 1%, while S&P 500 and Nasdaq-100 futures were down 1.1% and 1.2%, respectively.

Amazon shares fell more than 7% after the company issued lower-than-anticipated operating income guidance for the current quarter. In contrast, Apple shares rose 2% following better-than-expected earnings and revenue results.

The July jobs report showed nonfarm payrolls increased by 73,000, falling short of the 100,000 gain forecast by economists surveyed by Dow Jones. The unemployment rate rose to 4.2%, and previous months' employment figures were revised downward. The report comes after a week of economic data releases and comments from Federal Reserve Chair Jerome Powell, who indicated the central bank is not rushing to cut interest rates, though the latest jobs data could influence future decisions.

President Trump announced updated tariffs ranging from 10% to 41%, with goods that have been transshipped to avoid tariffs facing an additional 40% levy. Imports from Canada will now be subject to a 35% tariff, up from 25%.

Adam Crisafulli of Vital Knowledge noted that optimism regarding tariff clarity is fading, stating, "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."

Despite strong earnings from some technology companies, the S&P 500 recorded its third consecutive losing session, with both the S&P 500 and Nasdaq retreating from intraday record highs. Fawad Razaqzada, an analyst at City Index, said, "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."

For July, the S&P 500 rose 2.2%, the Nasdaq gained 3.7%, and the Dow posted a marginal increase of less than 0.1%. For the week, the S&P 500 was on track for a 0.8% loss, the Dow for a 1.7% decline, and the Nasdaq for a slight gain.