Stocks Experience Monthly Gains, Weekly Losses amid Earnings Reports

by MarketNewsData

U.S. stocks ended sharply lower on Friday, capping a volatile week where investor sentiment soured amid disappointing jobs data and an unexpected tariff escalation. Despite posting solid gains for the month of July, all three major indexes closed the week in the red, as concerns over economic growth and rising geopolitical tensions weighed heavily on markets.

📉 Key Highlights:

  • All major indexes closed sharply lower Friday, ending the week in the red despite gains for the full month of July.

  • S&P 500 dropped 1.6%,

  • Dow Jones fell 1.2%,

  • Nasdaq Composite tumbled 2.2%.

  • Weekly declines were driven by a combination of weak labor data and geopolitical risk, particularly new tariff announcements.

🗓️ Weekly & Monthly Trend Recap:

  • July ended with monthly gains for all major indexes.

  • However, this week posted losses across the board:

    • Dow marked its fifth consecutive daily decline.

    • Nasdaq and S&P retreated from record highs set earlier in the week.

⚠️ Market Movers:

1. Jobs Report Misses Mark

  • Nonfarm payrolls rose by just 73,000, far below the expected 104,000.

  • May and June revisions slashed 258,000 jobs combined.

  • Unemployment rose to 4.2%, fueling concerns about economic momentum.

  • Market participants now see a higher chance of a Fed rate cut in September.

2. Tariff Surprise

  • President Trump announced sweeping new tariffs, up to 41%, on dozens of countries including Canada, Taiwan, and Switzerland.

  • The order shocked markets and escalated fears of renewed trade wars.

3. Fed Holds Steady

  • The Federal Reserve held rates unchanged.

  • Chair Jerome Powell emphasized a data-dependent and cautious stance moving forward.

4. Tech and Earnings Volatility

  • Meta and Microsoft reached record highs earlier this week.

  • Amazon dropped sharply despite beating earnings.

  • Apple experienced post-earnings volatility.

  • Reddit, LendingClub, and Robinhood rallied on strong Q2 results.

  • Novo Nordisk saw its worst performance in decades following a lowered sales outlook.

🔮 Outlook:

  • August begins with elevated volatility, as markets digest macro and political developments.

  • Upcoming earnings from Caterpillar, Eli Lilly, and McDonald’s will guide sentiment.

  • While August and September are historically weaker months, strong corporate results and dovish Fed expectations could soften seasonal pressures.

✅ Bottom Line:

A powerful Friday sell-off erased earlier gains, as weak jobs data and aggressive new tariffs reignited recession fears. Despite solid July performance, markets now enter August on shaky footing, with investors focused on Fed signals, earnings, and global tensions.

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