Tonight’s Highlights | Nonfarm Shock
On July 31, U.S. President Trump signed an executive order imposing reciprocal tariffs ranging from 10% to 41% on multiple countries and regions, with the effective date delayed from August 1 to August 7.
Kim Heuacker of financial consultancy Camarco commented: “Next week, with the implementation of Trump’s tariffs, global trade will reach a critical turning point, bringing uncertainty about how these new and old trade barriers will impact markets.
Current high valuations, especially in U.S. stocks, are becoming increasingly hard to justify.”
Beyond reciprocal tariffs, the U.S. President has hinted at separate tariffs on pharmaceuticals, semiconductors, critical minerals, and other key industrial products in the coming weeks, suggesting trade uncertainty will persist. Meanwhile, U.S. courts are still assessing the legality of these reciprocal tariffs.
Impacted by U.S. tariffs, European stocks saw broad declines on Friday, with benchmark indices in France, Germany, and Italy each dropping nearly 2%.
As the grand finale of this week’s “life-or-death 48 hours” for U.S. stocks, the just-released July nonfarm report showed 73,000 new jobs added, well below the expected 104,000, with the unemployment rate rising as anticipated to 4.2%.
Additionally, the prior two months’ nonfarm data underwent a “violent revision.” May’s job growth was revised down from 144,000 to 19,000 (a 125,000 reduction), and June’s from 147,000 to 14,000 (a 133,000 cut). After this adjustment, May and June’s combined employment figures were 258,000 lower than previously reported.
(Source: tradingeconomics)
Post-data, interest rate swap markets raised the probability of a September Fed rate cut, the dollar weakened significantly against major currencies, and spot gold surged over 1%.
Other Market News
Apple Earnings Crush Expectations
After Thursday’s close, the company reported its Q3 2025 earnings (ended June 28), far exceeding Wall Street forecasts.
Total revenue hit $94.04 billion, a recent high, up 10% year-over-year against an expected $89.53 billion; net profit was $24.43 billion, with EPS at $1.57, beating the $1.43 estimate.
On the hot AI topic, CEO Tim Cook said the company is ramping up AI investments and “open to acquisitions to accelerate its product roadmap.”
Switch 2 Shines, Nintendo Q2 Revenue Soars 132%
Japanese firm Nintendo reported Q2 2026 (Q1 fiscal year) earnings on Friday, with net sales hitting ¥572.3 billion (~$38 billion) driven by the hot-selling Switch 2, far exceeding the expected ¥471.1 billion and up 132.1% from last year’s ¥246.6 billion.
‘Bitcoin Whale’ Strategy Posts First Profit in Six Quarters
Strategy Corp (formerly MicroStrategy) disclosed Q2 earnings after Thursday’s close, posting a $9.97 billion net profit ($32.6 per share), its first profit in six quarters, boosted by Bitcoin’s record highs.
U.S. Medicare May Pilot Weight-Loss Drug Coverage
Reports suggest the Trump administration plans to pilot coverage for Lilly’s Mounjaro/Zepbound and Novo’s Ozempic/Wegovy under Medicare and Medicaid, currently limited to type 2 diabetes patients. The pilot is slated for Medicaid in April 2026 and Medicare in January 2027.