Markets retreat as tariffs, earnings, and jobs data rattle sentiment

David Morrison

SENIOR MARKET ANALYST

01 Aug 2025

Share this article on social

Related News

NEWS AND INSIGHTS

US markets surge as Trump hints at tariff breaks

NEWS AND INSIGHTS

Crude oil rises as US tariffs and OPEC+ cuts boost prices

NEWS AND INSIGHTS

Markets steady as data weakness raises questions

US stock index futures were sharply lower in early trade this morning, adding to losses made during Thursday’s session. All the US majors closed in the red yesterday, despite strong second quarter results from Microsoft and Meta Platforms, together with news that both ‘Magnificent Seven’ constituents were ramping up their spending on AI development.

The NASDAQ posted a minimal loss, while the S&P 500 ended down 0.4%. Both indices had hit fresh all-time intra-day highs earlier in the session. Meanwhile, the Dow and Russell 2000 fell 0.7% and 0.9% respectively. The tech-fuelled rally fizzled somewhat on tariff concerns ahead of President Trump’s overnight deadline.

Source: TN Trader

Mr Trump’s latest tariffs will bring increased duties on a wide range of US imports. These measures include 35% tariffs on Canadian goods, 25% on India, 15% on both Japan and the European Union, and nearly 40% on Swiss products. Cambodia and Malaysia face rates of 19%, while Taiwan is now subject to a 20% tariff. These additional levies will officially start in a week’s time. Mexico has been granted a 90-day extension amid ongoing negotiations.

Just hours before the deadline, President Trump confirmed that goods transhipped to avoid existing duties would also face a punitive 40% levy. The sweeping changes to trade policy have overshadowed otherwise strong earnings from Microsoft and Meta Platforms, leaving investors uncertain about the near-term direction for equities.

After last night’s close, Apple delivered solid quarterly results, reporting strong iPhone sales that saw its stock post a 2% gain. However, this positive tone was short-lived. Amazon’s earnings fell flat with investors. There was particular concern over disappointing results from its cloud division, along with some cautious forward guidance. Amazon tumbled over 8% following the news, and it’s also worth noting that key semiconductor manufacturers were all in the red this morning. Nvidia and TSMC were both down over 2%, while Super Micro Computer and Advanced Micro Devices were down over 4% each.

Market volatility ticked up this morning. The VIX has risen close to 12% since the beginning of this week, reflecting growing investor unease as earnings, tariffs and key macro data converge. Despite strong results from Apple, headline risk has reemerged. With updated US tariffs soon to take effect, traders are likely to remain cautious, especially heading into the weekend.

Traders now turn their attention to July’s Non-Farm Payrolls which are released later today. The consensus expectation is for a payroll print of around 110,000 jobs, down from 147,000 previously. Analysts also expect the Unemployment Rate to tick up to 4.2% from 4.1%. This is a key measure of the US labour market, and of great importance as far as the Federal Reserve is concerned.

The Fed has a dual mandate: to maintain price stability (keep inflation under control) while ensuring maximum employment. As things stand, inflation is taking precedence. But any softening in the labour market will make it difficult for the central bank to argue against loosening monetary policy.

Meanwhile, the Federal Reserve’s decision to hold rates at 4.25%–4.5% in a 9-2 vote earlier this week shows internal division, particularly as President Trump continues to push for rate cuts. With the Fed on pause until September at the earliest, attention turns to economic data. So today’s Non-Farm Payroll report will be watched closely. 


Suggested articles

See allarrow-icon
Forex vs stocks — which is right for you?

Gain the edge

Sign up and unlock early
access to exclusive trading
insights and educational tips.

I confirm I am 18 years old or above.

By signing up to hear from us, you agree to our terms and privacy policy.

Please keep me updated on Trade Nation’s sponsorships, news, events and offers.

The markets are moving.

Start trading now.

Get startedarrow-icon

Trade on our
award-winning
platform


en-au

Payment methods

Trade on

Regulatory bodies

UK - FCA

Australia - ASIC

Seychelles - FSA

Bahamas - SCB

South Africa - FSCA

Customer support

Sponsors of your favourite teams

The legal stuff

Contract for differences are complex financial instruments that requires knowledge and understating as it involves a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. This information is general advice only and does not take into consideration your objectives or financial means. Refer to our legal documents.

Trade Nation is a trading name of Trade Nation Financial UK Ltd, a financial services company registered in England & Wales under company number 07073413, is authorised and regulated by the Financial Conduct Authority under firm reference number 525164. Our registered office is 14 Bonhill Street, London, EC2A 4BX, United Kingdom.

Trade Nation is a trading name of Trade Nation Australia Pty Ltd, a financial services company registered in Australia under number ACN 158 065 635, is authorised and regulated by the Australian Securities and Investments Commission (ASIC), with licence number AFSL 422661. Our registered office is Level 17, 123 Pitt Street, Sydney, NSW 2000, Australia.

Trade Nation is a trading name of Trade Nation Ltd, a financial services company registered in the Bahamas under number 203493 B, is authorised and regulated by the Securities Commission of the Bahamas (SCB), with licence number SIA-F216. Our registered office is No. 3 Bayside Executive Park, West Bay Street & Blake Road, Nassau, New Providence, The Bahamas.

Trade Nation is a trading name of Trade Nation Financial Markets Ltd, a financial services company registered in the Seychelles under number 810589-1, is authorised and regulated by the Financial Services Authority of Seychelles (FSA) with licence number SD150. Our registered office is CT House, Office 6B, Providence, Mahe, Seychelles.

Trade Nation is a trading name of Trade Nation Financial (Pty) Ltd, a financial services company registered in South Africa under number 2018 / 418755 / 07, is authorised and regulated by the Financial Sector Conduct Authority (FSCA), with licence number 49846. Our registered office is 19 9th Street, Houghton Estate, Johannesburg, Gauteng, 2198 South Africa. 

The information on this site is not directed at residents of the United States or any particular country outside the UK, Australia, South Africa, The Bahamas or Seychelles and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

© 2019-2025 Trade Nation. All Rights Reserved