
Breakfast News: Tariff Twist Knocks Stocks
August 1, 2025
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1. Futures Dip on Rejigged Tariffs
Futures in the three main U.S. stock markets all fell over 0.9% this morning following the news of a slew of revised tariffs from President Trump, including 35% levies on some Canadian goods. The S&P 500 closed out July with a 2.2% gain, for a third straight positive month, with the Nasdaq index rising 4.5%.
- Average U.S. tariff rate to rise to 15.2%: Most of the new duties will take effect after midnight on August 7, with the overall impact seeing the average rate rise from 13.3% previously and up drastically from the 2.3% in 2024 before Trump became president.
- "There's still uncertainty about China, Mexico has been delayed by another 90 days, and details around sectoral tariffs are also yet to come": Shane Oliver, chief investment officer at AMP, warned there's still a lot for investors to digest, with the increasing likelihood of some economic impact in the months ahead.
2. Apple CEO Signals AI Buys
Apple (AAPL -2.51%) rose 2% after the closing bell, with quarterly results ahead of expectations thanks to strong iPhone sales, although concerns around lingering tariff impacts tempered optimism.
- "We're very open to M&A that accelerates our roadmap": CEO Tim Cook explained in order to help catch up to rivals in the AI space, he's happy to purchase companies, noting seven acquisitions already this year.
- Shifting out of first gear: Fool analyst Seth Jayson commented "Apple's growth looked strong for the first time in a long time...whether or not Apple can keep this momentum is the question. One wonders how much demand may have been pulled forward by shoppers trying to beat tariffs. Cook said 1%. I suspect that's a rose-tinted view."
3. Amazon Falls Over 6% on Weak Guidance
Amazon (AMZN -8.09%) fell by more than 6% in pre-market trading despite posting a 33% boost in earnings per share (EPS) versus the same period last year. The results were overshadowed by weak guidance and high capex projections.
- "It's still a pretty significant market segment leadership position that we have": CEO Andy Jassy came under fire regarding expected sales growth in cloud computing lower than rivals, but said Amazon Web Services offered advantages in availability and security and could maintain its top spot.
- It's still unclear "who's going to end up absorbing the higher costs": Jassy brushed off tariff concerns, saying the company hadn't noted diminishing demand or meaningfully appreciating prices, although this could change later in the year.
4. Next Up: Jobs, Oil, and Buffett
Due 8:30AM ET, the July jobs report is expected to show non-farm payrolls of 110k added, with a move higher in the unemployment rate from 4.1% to 4.2% potentially offset by a projected increase in average hourly earnings from 2.7% to 3.8%.
- EPS beaten expectations for the past four quarters: ExxonMobil (XOM -1.96%) is slated to release quarterly earnings before the market opens. Investors will be watching out for any updates on upstream production volumes, as well as the energy transition strategy.
- Revenue growth expected, earnings due to fall: Thrice recommended in Stock Advisor, Berkshire Hathaway (BRK.B 0.18%) will release results on Saturday morning, with an update on cash holdings being watched alongside insurance underwriting trends.
5. Figma's Massive Pop Signals IPO Return
Figma (FIG 5.63%) rocketed 250% higher on the first day of trading to swell the market cap to almost $68 billion, offering a good indication the tech IPO market is heating back up again.
- The largest first-day pop in over three decades for a U.S. company raising over $1 billion: The shares offered in Figma's IPO were more than 40 times oversubscribed, with Bloomberg reporting over half of the orders received no stock.
- "This is the time where we can create tremendous value for our community...and I think the public market is the right place to do it": Co-founder Dylan Field highlighted ambitious plans going forward, including M&A activity to scale faster, along with using funds from the IPO to drive growth.
6. Your Take
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