U.S. stock futures fell on Friday as investors assessed new tariff announcements from President Trump and mixed earnings reports from major technology companies ahead of the July jobs report.
Futures for the Dow Jones Industrial Average dropped 402 points, or 0.9%. S&P 500 futures also declined by 0.9%, while Nasdaq-100 futures were down 1%.
The technology sector showed diverging results. Amazon shares tumbled more than 7% in premarket trading after the e-commerce giant issued weak operating income guidance for the current quarter. In contrast, Apple stock rose 2% after reporting earnings and revenue that beat expectations.
Adding to market pressure, President Trump announced updated duties ranging from 10% to 41%. According to the White House, goods that are transshipped to circumvent existing tariffs will face an additional 40% levy. The new rules also raise the duty on imports from Canada, a key U.S. trading partner, to 35% from 25%.
Adam Crisafulli of Vital Knowledge wrote that these developments, along with uncertainty around Federal Reserve policy and recent comments on drug pricing, are “beginning to weigh on sentiment while elevated valuations provide little in the way of downside protection.” He added that the market may be underestimating the negative impact of the new tariffs.
Investors are also awaiting the July jobs report, scheduled for release at 8:30 a.m. ET. Economists polled by Dow Jones expect to see a slowing labor market, with payrolls increasing by 100,000 and the unemployment rate rising to 4.2%.
The expected downturn follows a lackluster session on Thursday, which marked the S&P 500’s third consecutive day of losses. An early tech-fueled rally, which had pushed the S&P 500 and Nasdaq to intraday records, eventually faded despite strong results from Microsoft and Meta Platforms.
Despite a positive close for July, with the S&P 500 gaining 2.2% and the Nasdaq advancing 3.7%, the major averages are on track for a losing week. The Dow is down 1.7% week-to-date, and the S&P 500 is tracking for a 0.8% loss. The Nasdaq is poised for a marginal gain of less than 0.1%.
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