publication
2025-08-01 22:03
The Friday session on New York stock exchanges brought strong drops in the main indexes. The official explanation was to increase customs customs partners and poor data from the American labor market. Nuclear threats on the US-Russia line did not help either.
The S&PC ended the first session of August at 6 238.01 points, which meant a 1.60%decrease. NASDAQ reduced by 2.24%, descending to a height of 20 650.13 points. Dow Jones gave 1.23% and finished with a result of 43 588.58 points.
In the market comments, the most space was devoted to new customs tariffs announced by the administration of Donald Trump. President Trump firmly applied Canada and Switzerland, although the majority of America's main trading partners received 15 % customs rates. It is difficult to say whether such decisions did not like the markets so much or whether they were used as an excuse to implement substantial profits from the previous four months.
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The mood was not improved by a poor report from the American labor market. He did not improve, although he should. Because thanks to this they revived hopes for the September reduction of interest rates in the federal reserve. After such weak “Payrolls”, the term market for over 80% values the chances of a 25-point reduction in federal funds at the September FOMC meeting. And the day before, the valuation of such a scenario was less than 38%. Theoretically (but also often in practice) lower discount feet lead to higher valuations of shares and bonds.
Another bad news was the escalation of the voltage on the United Russia line. President Trump issued an order to deploy two nuclear submarines in the “appropriate regions” in response to the provocative threats of the former Russian president Dmitry Medvedev. Even if the likelihood of a nuclear confrontation of two atomic powers is very low, it means a new risk factor for financial markets.
In addition, investors may experience the feelings of Déjà VU. It was exactly a year ago a poor report from the American labor market in combination with a slightly surprising increase in interest rates at the Bank of Japan caused a small crash on financial markets. It is true that this time the Japanese feet did not move, but like a year ago, world stock exchanges have solid increases behind them and some investors could gain a false sense of security.
– A year ago, the Fed screwed up with a lack of foot reduction in July and then they had to make up for it in September (when he lowered his feet by 50 pb. – editor's note). They will probably do the same and this year, “Brian Jacobsen, the main economist at Annex Wealth Management, told Reuters.
In addition, President Donald Trump does not cease to put pressure on the President of Fed Jerome Powell. After consistent with the expectations of a lack of foot reduction at the July meeting, Fomc Trump called Powell a “stubborn moron.” There were also two members of the Federal Reserve Board against Powell, who on Wednesday voted for a 25-point reduction of federal funds.
– I believe that the “Wait & See” approach is too cautious and in my opinion does not properly balance the risks for economic perspectives, which may result in the reaction of the monetary policy – Christoper Waller wrote in a statement, one of two July “dissidents”. On the other hand, Michelle Bowman, who also wanted to cut her feet in July, pointed to the weakness of the labor market.
On Friday, investors sold primarily technological giants. Amazon's quotations dived over 8% after the giant of the Internet trade disappointed with forecasts for the current quarter. Investors expected more from Amazon's “cloud” business (AWS). Over 3% lost the finish of the finish line, which the day before on the wave of excellent quarterly results increased by more than 11%.
It is worth remembering that New York stock exchanges have a very power behind them. From the April hole to the July summit, the S & P500 grew by as much as 32%. Nasdaq gained over 44%in the same period. Thus, the profits lying on the table may tempt them to implement them and to deepen the Friday discount. The more that the beginning of August is a statistically poor period for the American stock market. Some correction after such a long period of virtually non -existent variability would be desirable as a decent downpour after a hot day.
