Stocks Drop Amid Tariff Surge, Tech Earnings Misses, and Jobs Report Jitters

Updated Fri, Aug 1 2025

Markets Slide as Tariff Hikes, Big Tech Earnings, and Jobs Report Weigh on Investor Sentiment

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Stock Futures Slide as Markets React to Tariff Hike, Tech Earnings, and Jobs Report Ahead

Stock futures fell on Friday as investors weighed President Trump’s revised tariff policy, mixed Big Tech earnings, and anticipation surrounding the upcoming July jobs report.

Futures tied to the Dow Jones Industrial Average dropped 402 points, or 0.9%. S&P 500 futures also slipped 0.9%, while Nasdaq-100 futures declined 1%.

Among major movers, Amazon shares plunged over 7% after the company issued a weaker-than-expected operating income outlook for the current quarter. In contrast, Apple shares rose 2% after the tech giant topped Wall Street’s earnings and revenue expectations.

President Trump unveiled new tariffs ranging from 10% to 41%, with goods rerouted to bypass existing tariffs now facing an additional 40% levy. Canadian imports, previously taxed at 25%, will now face a 35% duty, escalating tensions with one of the U.S.’ largest trading partners.

“Investors have tolerated these tariffs under the belief that clarity was a net positive, but that sentiment is fading,” said Adam Crisafulli of Vital Knowledge. “The reality is that these tariffs will likely have stagflationary effects as their impact slowly filters through economic data.”

Markets are also bracing for the July jobs report, set to be released at 8:30 a.m. ET. Economists expect payrolls to rise by 100,000, with the unemployment rate edging up to 4.2%, signaling a possible slowdown in the labor market.

Friday's action follows a weak session Thursday, in which the S&P 500 recorded its third straight loss, despite strong earnings from Microsoft and Meta Platforms. Both the S&P 500 and Nasdaq hit intraday highs earlier in the day before the tech rally faded.

“The S&P 500 outlook is still bullish, but uncertainty is rising,” said Fawad Razaqzada of City Index. “Big Tech is fueling market optimism amid the AI boom, but risks tied to geopolitics, valuations, and monetary policy could derail the rally.”

Despite volatility, major indexes managed to close out July with gains:

• S&P 500 rose 2.2%

• Nasdaq gained 3.7%

• Dow edged up less than 0.1%

For the week, however, markets are on pace for a mixed finish:

• S&P 500 down 0.8%

• Dow off 1.7%

• Nasdaq slightly up, tracking a gain of less than 0.1%

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