HG MARKETS:

U.S. stock futures edged lower early Friday as investors braced for the final trading session of one of the busiest weeks in financial markets this year. Key factors driving sentiment included global trade developments, tech earnings, and upcoming U.S. economic data, Dow futures were down 319 points (0.7%), S&P 500 futures fell 41 points (0.6%), and Nasdaq 100 futures dropped 158 points (0.7%). Thursday’s session saw major indexes reverse earlier gains, despite strong earnings from Meta and Microsoft, as investors focused instead on looming tariff decisions.

Former President Donald Trump announced new sweeping tariffs late Thursday, imposing duties of up to 50% on dozens of countries. These include 15% tariffs on goods from the EU, Japan, and South Korea, and 10% on countries with a U.S. trade surplus. Canada faces 35% tariffs on non-compliant goods under the USMCA. Brazil and other nations were hit with the steepest 50% duties. Mexico received a temporary 90-day extension to reach an agreement with the U.S.

Amazon posted stronger-than-expected earnings and revenue for the second quarter, driven by growth in e-commerce and advertising. Despite this, shares fell more than 6% in after-hours trading due to disappointing margins at AWS, Amazon’s cloud division. Revenue reached $167.7 billion, up 11% year-over-year, while AWS posted $30.9 billion in sales. However, analysts expressed concerns about AWS’s profitability and potential market share loss. Amazon’s AI-related investments also weighed on its free cash flow, which came in below expectations.

Apple also beat Wall Street forecasts in its third-quarter results, thanks to solid iPhone sales and record services revenue. Earnings per share came in at $1.57 on revenue of $94.04 billion, both ahead of expectations. Stronger demand in China helped lift iPhone revenue to $44.58 billion. However, concerns remain about Apple’s lagging position in the AI race and the potential impact of Trump’s tariffs on its global supply chain. A court ruling on Google’s search payments to Apple could also affect its services revenue going forward.

Finally, investors are closely watching July’s U.S. nonfarm payrolls report, due Friday, which is expected to show a slowdown in job creation. Forecasts suggest 106,000 jobs were added last month, down from June’s 147,000, with unemployment ticking up to 4.2%. Signs of a cooling labor market have emerged, which may influence the Federal Reserve’s next interest rate move. While slower hiring could push the Fed toward a rate cut, persistent inflation — possibly worsened by new tariffs — may force policymakers to keep rates elevated for longer.