Nasdaq 100: US Stocks Slide as Tariffs Hit Tech, VIX Spikes to Six-Week High

Did Tariffs Trigger Broad-Based Selling Across Sectors?

Hours before Friday’s market open, President Trump signed an executive order slapping new tariffs on imports from Canada, Brazil, India, and Taiwan. The decision sparked immediate concern about escalating trade tensions and potential retaliatory measures, pressuring risk assets across the board. Apple shed 2% after CEO Tim Cook warned the tariffs would add $1.1 billion in costs this quarter, despite the company offering a solid revenue forecast.

Nine of 11 S&P 500 sectors finished in the red, with consumer discretionary plunging 3.5%, weighed by an 8% drop in Amazon after its cloud division missed growth estimates. Technology and communication services followed closely, losing 1.9% and 1.45%, respectively. Financials declined 2%, dragged down by Coinbase, which plummeted 15.6% after reporting a sharp fall in adjusted profits.

How Did the Jobs Report Influence Rate Cut Bets?

The July payrolls report showed job growth slowing more than expected, with sharp downward revisions to May and June data. Although the unemployment rate held steady, traders increased bets on a September rate cut, with FedWatch pegging odds at 80%. Russell Investments noted that job creation has narrowed to a few sectors like healthcare, suggesting broader labor market softness.