What’s moving the markets today?

U.S. stock futures fell ahead of the final session of one of the busiest weeks for financial markets so far this year as the White House said it would raise tariffs on dozens of countries as a long-awaited trade deadline set by President Donald Trump expired. Tech giants Amazon.com and Apple are due to report their latest earnings, with their AI plans in the spotlight. Meanwhile, the closely watched nonfarm payrolls report for July is due as the recently resilient labor market shows signs of cooling.

1. Futures lower

U.S. stock futures traded in the red on Friday as investors braced for the final day of a key week that included everything from international trade developments and central bank decisions to earnings from mega-cap technology companies and the release of important economic data.

By 03:32 ET (07:32 GMT), the Dow futures contract was down 319 points, or 0.7%, S&P 500 futures were down 41 points, or 0.6%, and Nasdaq 100 futures were down 158 points, or 0.7%.

Shares of Facebook owner Meta jumped more than 11%, while software titan Microsoft’s stock price rose, making it the second publicly traded company after Nvidia (NASDAQ:NVDA) to surpass $4 trillion in market value. The advance was driven by hopes that the companies’ plans to spend tens of billions of dollars on artificial intelligence are starting to pay off.

2. Trump announces new massive tariffs on a number of countries

After weeks of negotiations and delays, the deadline for President Trump’s massive “reciprocal” tariffs to take effect is here.

On Thursday night, Trump signed an executive order to eliminate tariffs of up to 50% on dozens of countries, stepping up his efforts to overturn a global trading system that he has described as unfair to U.S. interests. The tariffs will take effect at 12:01 a.m. on August 7.

Major industrialized economies such as the European Union, Japan and South Korea will face a 15% tariff, while other countries that have a trade surplus with the US will be hit with a 10% tariff.

Even higher tariffs are planned for other countries, including a 50% tariff on Brazil. Trump has increased tariffs on Canada to 35% on goods that do not comply with the US-Mexico-Canada agreement signed during Trump’s first term.

3. Amazon reports higher sales and profits

Amazon reported better-than-expected second-quarter profits and revenue, supported by strength in e-commerce and advertising, but shares fell more than 6% in extended trading as operating margins at the group’s key cloud computing unit fell short of investor hopes.

The company reported earnings per share of $1.68, above analysts’ average estimate of $1.32.

Revenue for the newest member of the so-called “Magnificent Seven” club of mega-cap tech names rose 11% year-on-year to $167.7 billion, also above expectations of $162.05 billion.

Amazon (NASDAQ:AMZN) Web Services, the key cloud computing division, had sales of $30.9 billion, up 17.5% from the previous year. While slightly above consensus expectations for 17% growth, concerns remain that AWS may have lost more market share than expected, said Gene Munster, managing partner of Deepwater Asset Management.

4. Apple gives the highest ratings

Apple on Thursday reported third-quarter results that beat Wall Street estimates, thanks to better-than-expected iPhone sales as demand in China recovered and services revenue hit an all-time high.

Apple (NASDAQ:AAPL) shares rose more than 2% during recent extended trading hours, even as analysts noted a weak tailwind from artificial intelligence. Some observers argue that Apple has fallen behind in the AI arms race, potentially reducing the future appeal of its products against AI-enhanced competitors.

For the quarter ended June 28, Apple reported earnings of $1.57 per share on revenue of $94.04 billion. Analysts surveyed by Investing.com had expected earnings of $1.43 per share on revenue of $89.53 billion.

Sales of Apple’s flagship iPhone, which accounts for nearly half of total revenue, rose 13% to $44.58 billion, compared with estimates of $40.22 billion.

“Our installed base of active devices also reached a new all-time high across all product categories and geographic segments,” the company said.

Demand in China, where Apple is struggling with increasing domestic competition, also rebounded after a year-on-year decline in the March quarter. Apple’s sales in Greater China rose to $15.37 billion from $14.73 billion a year earlier, beating estimates of $15.19 billion.

5.  Upcoming jobs outside of agriculture

Economists will have a chance to analyze the latest U.S. labor market index on Friday when the Labor Department releases its all-important monthly employment report for July.

The US is expected to have added 106,000 jobs last month, compared to 147,000 in June, while the unemployment rate is expected to rise slightly from 4.1% to 4.2%.

But the Federal Reserve is simultaneously grappling with inflation that is hovering above its long-term 2% target, and some early indicators show that the cost of Trump’s tariffs is starting to feed through to the prices of some goods exposed to trade restrictions. As a result, policymakers may be inclined to keep interest rates relatively high to prevent a sharp rise in inflation.