US Stocks Decline on Tariffs and Weak Jobs Data; Amazon, Apple Shares Fall

Market Downturn Driven by Tariffs and Jobs Report

• 📉 US stocks experienced a significant slump on Friday, with the Dow Jones Industrial Average dropping about 1.25%, the S&P 500 shedding 1.6% (its steepest daily decline in over two months), and the Nasdaq sliding approximately 2.25%.
• 📈 The market opened lower following President Donald Trump's announcement of steeper-than-expected tariffs on several trading partners.
• 📊 Further dampening investor confidence was data revealing a major slowdown in US job growth, with sharp downward revisions to May and June's numbers.

Investor Uncertainty and Fed Rate Cut Expectations

• ⚠️ Uncertainty surrounding tariffs, tax code extensions, and geopolitical tensions (like the situation with Iran) contributed to a reluctance in hiring decisions, according to RGA Investments' Chief Investment Officer Rick Gardner.
• 💡 These revised job numbers may provide the Federal Reserve with an opportunity to lower interest rates.
• 🚀 Market expectations for a Fed rate cut at the September meeting surged to over 86% from approximately 38% in the prior session, as indicated by CME's Fed Watch tool.

Major Stock Movements: Amazon and Apple

• 📦 Amazon was a significant drag on all three major Wall Street indexes, with its shares plummeting over 8% after the company failed to meet high expectations for its Amazon Web Services (AWS) cloud computing unit.
• 🍎 Apple shares lost 2.5% despite posting a current quarter revenue forecast that exceeded Wall Street estimates.
• 💰 However, Apple CEO Tim Cook cautioned that US tariffs would add an estimated $1.1 billion in costs over the forecast period.