Tariffs weigh on global stocks; Amazon slumps: Markets Wrap

by Robert Brand 

Global stocks extended a selloff as President Donald Trump’s sweeping import tariffs raised concerns about the outlook for economic growth. 

Futures on the S&P 500 retreated about 1%, suggesting the underlying gauge will extend a three-day run of declines. Amazon.com Inc. slumped more than 8% in premarket trading after its underwhelming earnings introduced a note of caution amid a generally upbeat reporting season for tech megacaps. 

The MSCI All Country World Index fell for a sixth day, the longest streak since September 2023. The dollar gained and Treasuries were steady ahead of key US jobs data due later Friday. 

The US president announced a slew of new levies, including a 10% global minimum and 15% or higher duties for countries with trade surpluses with the US, as he forged ahead with his turbulent effort to reshape international commerce. Questions about the impact on growth and inflation are starting to overshadow the AI-driven optimism that has buoyed megacap technology stocks. 

“Next week marks a significant turning point for global trade with the introduction of Trump’s tariffs, creating uncertainty about how these new and historical barriers will affect markets in practice,” said Kim Heuacker, an associate consultant at Camarco. “Current high valuations, particularly among US stocks, are becoming increasingly difficult to justify.” 

Europe’s Stoxx 600 benchmark fell more than 1% to a one-month low, with pharmaceutical stocks including Novo Nordisk A/S, Sanofi SA, GSK Plc and AstraZeneca Plc leading declines after Trump demanded drug companies lower US prices. 

The tariffs are “really bad for Europe,” said Ludovic Subran, chief investment officer at Allianz SE. “The cost for companies will be huge, as the US is the biggest market by far.” 

Trump’s baseline rates for many trading partners remain unchanged at 10% from the duties he imposed in April, easing the worst fears of investors after the president had previously said they could double. Yet, his move to raise tariffs on some Canadian goods to 35% threatens to inject fresh tensions into an already strained relationship. 

The average US tariff will rise to 15.2% if rates are implemented as announced, according to Bloomberg Economics, up from 13.3% earlier — and significantly higher than the 2.3% in 2024 before Trump took office. 

Markets Live Strategist Garfield Reynolds says: 

The impact will hurt global trade and growth, and that’s likely to bring equities down from their recent peaks. Lingering uncertainty will also weigh on corporate decision-making, further chilling growth. While most of the levies just announced are lower than the extremes flagged on April 2, there’s a lack of rationale for many of the rates set that will add to the air of policy volatility. 

The market’s attention will soon turn to Friday’s jobs report for July, which is forecast to show companies are becoming more deliberate in their hiring. Employment likely moderated after a June increase, while the unemployment rate is seen ticking up to 4.2%. 

“Given all the uncertainties, it makes a lot of sense for traders, for dealers to take some money off the table going into nonfarm payrolls today,” said Gareth Nicholson, CIO of Nomura International Wealth Management. 

Corporate Highlights: 

• Apple Inc. climbed 2% in US premarket trading after reporting its fastest quarterly revenue growth in more than three years, easily topping Wall Street estimates. 
• Microsoft Corp. extended gains in the premarket after becoming only the second company to reach a $4 trillion market capitalization. 
• Coinbase Global Inc. shares fell as much as 12% in premarket trading after the largest US crypto exchange reported revenue for the second quarter that missed the average analyst estimate  
• Teleperformance SE shares slumped more than 17% after the digital-servcies company missed first-half earnings estimates and lowered full-year guidance. 
• Universal Music Group NV dropped after the music label reported its Ebitda margin expanded more slowly than expected in the second quarter, with its merchandising unit being hit by higher tariffs and freight costs. 
• AXA SA fell 6.4% after the French insurer reported first-half net income that missed estimates. 
• Daimler Truck Holding AG shares sluimped more than 5% after the German commercial vehicle firm lowered its 2025 outlook, citing the impact on sales from tariffs in North America. 
• Melrose Industries Plc gained the most in almost four months after the aerospace company reported earnings ahead of expectations in the first half. 

Some of the main moves in markets: 

Stocks 

• S&P 500 futures fell 0.9% as of 5:39 a.m. New York time 
• Nasdaq 100 futures fell 1.1% 
• Futures on the Dow Jones Industrial Average fell 0.9% 
• The Stoxx Europe 600 fell 1.2% 
• The MSCI World Index fell 0.3% 

Currencies 

• The Bloomberg Dollar Spot Index rose 0.2% 
• The euro fell 0.1% to $1.1402 
• The British pound fell 0.4% to $1.3152 
• The Japanese yen rose 0.2% to 150.48 per dollar 

Cryptocurrencies 

• Bitcoin fell 1.1% to $115,161.15 
• Ether fell 2.7% to $3,634.4 

Bonds 

• The yield on 10-year Treasuries was little changed at 4.38% 
• Germany’s 10-year yield advanced one basis point to 2.70% 
• Britain’s 10-year yield advanced five basis points to 4.62% 

Commodities 

• West Texas Intermediate crude fell 0.5% to $68.89 a barrel 
• Spot gold rose 0.1% to $3,294.56 an ounce 

This story was produced with the assistance of Bloomberg Automation. 

© 2025 Bloomberg L.P.