Morning Brief Jobs miss, tariffs rise, Amazon slumps, Apple jumps on China demand
Aug 1, 2025
Stocks take a hit as July's jobs report disappoints, with revised numbers showing fewer gains. President Trump's new tariffs raise concerns, especially for Canada and Switzerland. Amazon struggles with a bleak forecast while Apple thrives on strong iPhone demand from China. The excitement around Figma's IPO shines a light on the competitive U.S. market. Insights into how economic indicators and Fed decisions could shape the future of the labor market add to the intrigue.
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Weaker Jobs Report Shifts Rate Odds
- July's jobs report was well below expectations with significant downward revisions for May and June.
- The unemployment rate ticked up to 4.2%, still low historically but raising rate cut odds for September.
Tariffs Boost Prices, Impact Economy
- Tariffs are rising sharply, pushing effective average tariff rates to around 18%, up from 15%.
- Early tariff impacts include price increases in core goods like furniture and apparel, signaling broader economic effects ahead.
Amazon Trails Peers in Cloud AI
- Amazon's cloud segment, AWS, grew but showed weaker profitability and a disappointing AI investment return compared to peers Microsoft and Google.
- Investors are questioning why Amazon's AI progress isn't matching the rapid improvements seen in competitors.