US markets opened sharply lower on Friday, pressured by new Trump tariffs on multiple trading partners, Amazon’s disappointing earnings, and a weak payrolls report. The Dow Jones dropped 349.2 points (0.79%) to 43,781.77, the S&P 500 fell 52.1 points (0.82%) to 4,287.28, and the Nasdaq lost 291.8 points (1.38%) to 20,830.64 at the opening bell.
Trump tariff deadline
As of August 1, 2025, President Trump has imposed high tariffs on imports from over 60 countries. India has been hit with a 25% tariff, along with extra penalties linked to its trade ties with Russia. Other countries are also affected, with tariffs of 15% on the EU and Japan and up to 50% on Brazil. Although the US has made some last-minute trade deals with the EU, Japan, and others, many countries are still facing steep import taxes. The goal is to cut trade deficits and support American manufacturing, but the move has led to higher costs, uncertainty in global markets, and the possibility of retaliation from affected nations.
Amazon Results
Amazon posted strong Q2 2025 results, with net sales up 13% year-over-year to Rs 167.7 billion and earnings per share of $1.68, beating expectations. AWS revenue rose 17.5% to $30.9 billion, contributing over half of the company’s $19.2 billion operating income. However, the stock fell over 7% after the report due to concerns over AWS growth lagging behind Microsoft and Google in AI. Investors were also cautious about Amazon’s Q3 operating income guidance, which came in at the lower end of expectations. High capital expenditures of $31.4 billion on AI and ongoing tariff-related uncertainties further weighed on sentiment.
US jobs data – July 2025
In July 2025, the U.S. added 73,000 jobs, much fewer than expected and a sign that the job market is slowing down. Economists had predicted 100,000 to 115,000 new jobs. The unemployment rate rose slightly to 4.2% from 4.1% in June. Job numbers for May and June were also revised down by 258,000, showing hiring was weaker than first reported. Most job growth came from health care, social assistance, and government roles. However, hiring in other areas was affected by tariff-related uncertainty and economic pressures. Wages grew slowly, and the labour force participation rate stayed low, pointing to a softer job market.