Markets Rattle as Trump Fires New Tariff Salvo Into Volatile Week

Markets are waking up to elevated risk on Friday. A surprise announcement from Donald Trump, revealing new sweeping tariffs, has quickly rattled investor confidence—particularly as it hits on the eve of a key U.S. jobs report.

Thursday brought a slew of data and high-profile earnings:

• German Preliminary CPI came in at 0.3%, slightly above expectations.

• Canadian GDP disappointed with a -0.1% print.

• From the U.S., Core PCE Price Index landed at 0.3%—matching prior levels and keeping the Fed cautious.

• The U.S. Employment Cost Index rose 0.9%, exceeding forecasts and reinforcing inflationary concerns.

On the corporate front, the spotlight was on Apple, Amazon, and Mastercard:

• Apple impressed, with earnings that spurred a 2% gain pre-market.

• Amazon, despite beating on earnings, hammered the market with weak guidance—sending pre-market shares tumbling 7% and dragging equity sentiment lower.

The result: both the S&P 500 and NASDAQ formed bearish engulfing patterns on Thursday’s daily charts—technically signaling possible downside ahead.

Today’s macro calendar holds major flashpoints:

• Eurozone Flash CPI, expected at 1.9%, remains in focus as the ECB navigates inflation constraints.

• U.S. Labor Report, including Non-Farm Payrolls (expected at 106,000), Average Hourly Earnings (0.3%), and Unemployment Rate (4.2%), are set to land midday.

• ISM Manufacturing PMI, expected around 49.5, will be watched for signs of contraction.

Early Friday price action is cautious:

• Futures are uneven—with Nasdaq under pressure following Amazon’s sell-off and broader trade concerns.

• In Europe, DAX futures are down, testing critical support levels.

• In FX, the USD holds firm; Aussie dollar and Euro are showing modest rebound, while NZD remains fragile.

• Commodities:
  • Oil continues to exhibit strength and range-holds near weekly highs.

  • Metals like gold and copper remain under pressure after Thursday’s sell-off.

With NFP on deck, Trump’s trade headlines in the air, and divergent momentum across markets—Friday doesn’t promise a dull exit to August.

Source: https://www.axiory.com/analytics/market-news/markets-rattle-as-trump-fires-new-tariff-salvo-int