Markets are waking up to elevated risk on Friday. A surprise announcement from Donald Trump, revealing new sweeping tariffs, has quickly rattled investor confidence—particularly as it hits on the eve of a key U.S. jobs report.
Thursday brought a slew of data and high-profile earnings:
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German Preliminary CPI came in at 0.3%, slightly above expectations.
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Canadian GDP disappointed with a -0.1% print.
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From the U.S., Core PCE Price Index landed at 0.3%—matching prior levels and keeping the Fed cautious.
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The U.S. Employment Cost Index rose 0.9%, exceeding forecasts and reinforcing inflationary concerns.
On the corporate front, the spotlight was on Apple, Amazon, and Mastercard:
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Apple impressed, with earnings that spurred a 2% gain pre-market.
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Amazon, despite beating on earnings, hammered the market with weak guidance—sending pre-market shares tumbling 7% and dragging equity sentiment lower.
The result: both the S&P 500 and NASDAQ formed bearish engulfing patterns on Thursday’s daily charts—technically signaling possible downside ahead.
Today’s macro calendar holds major flashpoints:
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Eurozone Flash CPI, expected at 1.9%, remains in focus as the ECB navigates inflation constraints.
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U.S. Labor Report, including Non-Farm Payrolls (expected at 106,000), Average Hourly Earnings (0.3%), and Unemployment Rate (4.2%), are set to land midday.
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ISM Manufacturing PMI, expected around 49.5, will be watched for signs of contraction.
Early Friday price action is cautious:
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Futures are uneven—with Nasdaq under pressure following Amazon's sell-off and broader trade concerns.
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In Europe, DAX futures are down, testing critical support levels.
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In FX, the USD holds firm; Aussie dollar and Euro are showing modest rebound, while NZD remains fragile.
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Commodities:
With NFP on deck, Trump's trade headlines in the air, and divergent momentum across markets—Friday doesn't promise a dull exit to August.