Financial institutions on edge: Job losses and Trump's tax levies unsettle investors
The U.S. jobs market took a hit in July, with only 73,000 payrolls added, significantly lower than the expected 104,000 new jobs. This disappointing figure, combined with downward revisions to previous months' job numbers, has caused concern among investors and contributed to a weaker labor market.
President Donald Trump's announcement of additional tariffs on selected imports, ranging from 10 to 41 percent, has also added to the uncertainty. These tariffs have increased import duties from 25 to 35 percent for Canada, and a further 40 percent tariff will apply to products routed through third countries.
The U.S. unemployment rate rose to 4.2 percent, and average hourly earnings increased by 0.3 percent from the previous month, slightly above the June figure. However, investors had expected more given the AI hype and solid demand.
Wall Street is under pressure at the close of the week, with the S&P 500 falling 1.6%, the Dow Future down nearly 450 points, and the Nasdaq Future falling over one percent.
In a contrasting development, tech giant Apple reported increases in both revenue and profit compared to last year, exceeding market expectations. As a result, Apple's stock is up around two percent in pre-market trading. However, Amazon's stock is down more than seven percent in pre-market trading, following a surprisingly weak outlook for its operating result in the current quarter.
Geopolitical tensions are also playing a role in market volatility. The repositioning of nuclear submarines and other geopolitical developments have increased uncertainty and concern among investors.
[1] Sources: CNBC, Reuters, Bloomberg, The Wall Street Journal.
- The unexpectedly low job growth in July, combined with President Donald Trump's announcement of additional tariffs, has created uncertainty in the finance and business sectors, affecting general-news headlines.
- The weak labor market, escalating trade tensions, and geopolitical concerns are causing worry among investors, potentially influencing future investing decisions in the stock market, such as the S&P 500, Dow Future, and Nasdaq Future.
- Despite the market volatility, some companies, like tech giant Apple, have managed to surpass expectations, as indicated by its share price increase in pre-market trading, while other companies, like Amazon, have faced difficulties, such as a significant drop in stock value, due to weak earnings projections.
