Markets Slide to Close the Week as Tariffs, Tech Weakness, and Economic Worries Weigh Heavily

Wall Street ended the week on a sour note as a trifecta of headwinds — higher global tariffs, disappointing earnings from key tech giants, and weaker-than-expected economic data — reignited concerns over slowing growth in both the economy and corporate profits.

Equity futures were already trending lower in premarket trading following a sweeping executive order from President Trump that imposed significantly higher tariff rates on several major trading partners. Among the changes: Brazil now faces a 50% tariff, Canada’s rate jumps to 35% from 25%, India sees 25%, Taiwan 20%, and a sweeping 40% tariff was slapped on all transshipped goods, regardless of origin.

Those early jitters were compounded by a soft July payrolls report, which showed just 73,000 nonfarm jobs added — well below expectations. Even more concerning were major downward revisions to May and June, which cut previously reported job gains by a combined 285,000. The three-month average for job growth now stands at just 35,000, amplifying recession fears. Later in the day, President Trump dismissed the Commissioner of Labor Statistics, Dr. Erika McEntarfer, citing the revisions and accusing her of data manipulation via a post on Truth Social.

Economic sentiment took another hit with the release of the July ISM Manufacturing Index, which came in weaker than expected. Despite hopes that tariff-driven onshoring would support the sector, the data indicated lingering uncertainty is still holding manufacturers back.

Corporate earnings failed to provide relief. Amazon (AMZN) and Apple (AAPL) both exceeded earnings and revenue expectations, yet their shares tumbled. Amazon plunged 8.3% as growth in AWS and operating income guidance came in underwhelming. Apple lost 2.5% despite posting solid quarterly results.

These disappointments dragged the consumer discretionary sector down 3.6%, making it the day’s worst performer. Technology stocks followed closely behind, with the information technology sector shedding 2.1%, weighed down by high expectations and elevated valuations. Other growth-sensitive sectors — financials (-1.8%), energy (-1.8%), and communication services (-1.7%) — also posted notable declines.

Losses were broad and deep. The Vanguard Mega Cap Growth ETF fell 2.3%, while the small-cap Russell 2000 slid 2.0% and the S&P Mid Cap 400 gave up 1.5%. The risk-off tone fueled a sharp rise in the CBOE Volatility Index, which jumped 23% to 20.57.

Some relief came from classic defensive sectors. Health care (+0.6%), consumer staples (+0.5%), and utilities (+0.1%) all posted gains, benefiting from a modest rotation into safer havens.

By the closing bell, the S&P 500 had fallen 1.6%, the Nasdaq Composite dropped 2.2%, and the Dow Jones Industrial Average lost 1.2% — all three major indices ending the week in the red.

In the bond market, Treasuries surged as investors flocked to safety and recalibrated their expectations for monetary policy. The soft jobs data pushed the implied probability of a Fed rate cut in September to 86%, up sharply from just 37.7% a day earlier. The 2-year Treasury yield plunged 25 basis points to 3.70%, while the 10-year yield dropped 14 basis points to 4.22%.

Separately, Fed Governor Adriana Kugler submitted her resignation from the Federal Reserve Board, effective August 8, 2025. President Trump is expected to nominate a replacement in the coming weeks.

The week’s events mark a turning point for investor sentiment, as geopolitical risks, economic uncertainty, and earnings concerns begin to chip away at the market’s recent optimism.

Despite coming under notable pressure in Friday’s session, our FTinvest 11 portfolio held up significantly better than the broader market benchmarks. While the S&P 500 endured a sharp weekly decline of 2.34%, FTInvest 11 limited its losses to just 0.61%.

On the day, the portfolio dipped a modest 0.12%, managing to stay comfortably above the 800 mark and closing at 802.97. The performance highlights FTinvest 11’s relative stability and defensive positioning during a week that tested market sentiment across the board.

With heightened volatility and broad-based equity weakness dominating trading, our portfolio once again demonstrated its ability to weather short-term headwinds more effectively than the major indices.