Everything goes wrong for US stocks, with the S&P 500 posting its biggest loss in months
A trio of troubles sank US stocks on Friday: Amazon’s lackluster guidance after the bell on Thursday, President Donald Trump’s plans for more tariff hikes starting August 7, and a string of poor economic data headlined by lower-than-expected job growth in July.
The S&P 500 had its first daily move of at least 1% in 26 sessions, and it was to the downside: the benchmark index finished off 1.6%, while the Nasdaq 100 and Russell 2000 each slumped 2%.
Defensively oriented S&P sector ETFs — healthcare, consumer staples, and utilities — were the only ones to go positive on the session. Consumer discretionary and tech each slumped 2%, with seven sector ETFs falling at least 1%.
Gains were led by Monolithic Power, which rose 10%, and First Solar, which jumped 5.3% after the solar panel developer posted a surprise Q2 earnings beat and a sunnier full-year outlook. On the flip side: Coinbase helped lead declines with shares falling 16.9% after the largest US crypto exchange posted disappointing Q2 results on Thursday.
Sticking with earnings…
Amazon shares continued to stumble, falling 8% as investors focused on the tech giant’s weaker-than-expected operating income forecast for the current quarter and massive capex spend.
Moderna shares slipped 6.6% after the vaccine maker reported Q2 results that beat Wall Street estimates but lowered its full-year revenue guidance.
Exxon fell 1.8% after reporting better-than-expected Q2 earnings and sales early Friday, despite warning weeks ago that soft prices would crimp profits.
Riot Platforms fell 17% after the bitcoin mining company reported Q2 earnings after the bell Thursday that missed on revenue amid rising mining costs.
Outside of earnings…
Joby Aviation rose 3% after the air taxi maker announced a partnership with defense tech firm L3Harris Technologies to develop military aircraft. L3Harris shares closed flat.
Tesla shares ticked lower 1.8% lower after EV sales fell in Sweden, Denmark, the Netherlands, and France — marking the seventh straight monthly drop in those countries.
