For the first time in months, financial markets showed signs of strain as President Donald Trump’s new tariff announcements and a worrisome jobs report sent major indexes sharply lower.
The S&P 500 posted its steepest weekly loss since May, while the Dow Jones Industrial Average endured its worst week since April. The declines reflect growing investor anxiety over trade policy and the possibility of a slowing labor market, both of which could weigh on U.S. economic growth heading into the second half of the year.
Trump’s latest round of tariffs added to uncertainty for global markets, raising concerns about supply chains and higher costs for consumers and businesses. Meanwhile, preliminary jobs data suggested the labor market may be softening, unsettling traders who have grown accustomed to consistent employment gains.
Despite the broader market slide, Big Tech continued to shine. Alphabet, Apple, Meta, and Microsoft reported earnings that exceeded expectations, helping limit losses for the Nasdaq. Microsoft, in particular, stood out, extending its winning streak to 10 consecutive weeks — its longest since 2023 — on strong cloud computing and artificial intelligence growth.
Analysts say the mixed picture highlights the current market divide: traditional sectors sensitive to tariffs and economic shifts are under pressure, while technology companies tied to digital transformation continue to attract investor confidence.
With investors now looking ahead to next week’s official jobs report and additional economic data, market volatility may remain elevated. How long Big Tech can continue to buoy sentiment amid wider economic concerns remains an open question.
Source: Axios