Market Jitters: Tariffs and Earnings Shake Wall Street

Wall Street futures dropped as new U.S. tariffs and poor Amazon earnings weighed on investor sentiment. President Trump imposed tariffs up to 41% on imports, with a deadline for China to agree. Meanwhile, volatility increased, and key economic data on jobs and Fed rate decisions added uncertainty to the markets.

Wall Street futures took a hit Friday due to new U.S. tariffs on multiple trading partners, along with Amazon's unexpected earnings report. Investors are keenly watching for pivotal jobs data, which could affect the Federal Reserve's forthcoming decisions.

President Donald Trump escalated trade tensions by signing an executive order imposing tariffs between 10% and 41% on imports, giving China until August 12 to reach an agreement. Analysts at Societe Generale noted the tariffs were harsher than anticipated, adding to market concerns.

Amazon shares plunged 8.3% in premarket operations, disappointing investors as its cloud unit underperformed against AI-focused companies like Alphabet and Microsoft. Meanwhile, economic indicators such as July payroll estimates and potential Fed rate decisions kept Wall Street on edge.

(With inputs from agencies.)