US stock futures were under pressure on Friday as investors grappled with a fresh round of tariff hikes announced by President Donald Trump, mixed earnings from Big Tech, and a critical US jobs report expected later in the day.
Futures tied to the Dow Jones Industrial Average dropped 402 points, or 0.9 percent. S&P 500 futures were also down 0.9 percent, while Nasdaq-100 futures slipped by 1 percent. If these declines hold, Wall Street is on track for its fourth consecutive losing session.
Tariffs Return to Centre Stage
Late Thursday, the White House announced sweeping revisions to US trade policy, imposing new import duties ranging from 10 percent to 41 percent. Goods rerouted via third countries to evade existing tariffs will now be subject to an additional 40 percent levy. In a significant development, tariffs on imports from Canada — one of the United States’ largest trading partners — have been raised to 35 percent, up from 25 percent.
While markets had grown somewhat desensitised to tariff rhetoric in recent months, analysts now warn of lingering economic consequences.
“Investors have been wrapping tariffs in a ‘better-than-feared, at least we have clarity’ narrative for weeks, but that perspective is wearing thin,” wrote Adam Crisafulli of Vital Knowledge. “Tariffs will have stagflationary implications as they slowly seep into the data over the course of many months.”
Amazon Sinks, Apple Rises
Tech earnings delivered mixed signals. Amazon shares fell more than 7 percent in premarket trade after the company issued subdued guidance on operating income for the current quarter. Apple, however, gained 2 percent after beating earnings and revenue expectations.
Despite strong prints earlier this week from Microsoft and Meta, the broader market has remained underwhelmed. The S&P 500 has now declined for three straight sessions, even after briefly touching record highs midweek.
“The S&P 500 forecast remains bullish for now, but the path ahead is uncertain,” said Fawad Razaqzada, analyst at City Index. “Geopolitical tensions, valuation concerns, and monetary policy uncertainty are threatening to pull the rug from under this rally.”
All Eyes on Jobs Data
Investors are awaiting the July non-farm payrolls report, due at 8:30 a.m. Eastern Time. Consensus forecasts point to a 100,000 increase in payrolls and a modest rise in the unemployment rate to 4.2 percent, potentially signalling a cooling labour market.
A weaker-than-expected print could support bets for policy easing, but might also reinforce recession concerns—especially when paired with tariff-related pressures.
Global Market Reaction
Tariff tensions reverberated across global markets. Asia-Pacific indices closed broadly lower, with South Korea’s Kosdaq slumping 4.03 percent and Australia’s ASX 200 falling 0.92 percent. Indian equities were also under pressure: the Nifty 50 was down 0.48 percent, while the BSE Sensex fell 0.34 percent by early afternoon.
European markets were not spared either. Pharmaceutical stocks dropped after Trump demanded price cuts from 17 major drugmakers, while Swiss luxury brands such as Richemont and Swatch Group came under renewed pressure after the US imposed a 39 percent import duty on Swiss goods, effective 7 August.
“The direct impact of this extreme change is meaningful, especially in the watches vertical,” Jefferies analysts led by James Grzinic said in a client note.
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