Markets brace for jobs report impact as tech earnings disappoint

Wall Street investors are digesting mixed earnings from tech giants Apple and Amazon while bracing for a crucial jobs report that could provide insight into the health of the U.S. economy. Apple’s Services division revenue missed expectations, with the company warning of $900 million in additional costs from tariffs, while Amazon issued cautious guidance citing “tariffs and trade policies” as concerns. These developments come as markets extended their winning streak, with the S&P 500 and Dow posting eight consecutive days of gains while the Nasdaq recovered all losses since President Trump’s April tariff announcement.

The big picture: Stock futures showed minimal movement Thursday evening following disappointing earnings reports from two “Magnificent Seven” tech giants.

• S&P 500 futures edged down 0.1%, Dow futures added just 5 points, and Nasdaq 100 futures declined about 0.3%.
• Apple shares fell 4% in after-hours trading after its Services division revenue missed Wall Street expectations and the company warned of $900 million in additional costs next quarter due to tariffs.
• Amazon dropped 2% following light guidance that specifically mentioned “tariffs and trade policies” as concerning factors.

Market momentum: Major U.S. indexes extended their winning streak Wednesday, continuing a recovery from April’s tariff-induced selloff.

• The Dow gained 0.2% while the S&P 500 advanced 0.6%, with both indexes logging their eighth consecutive day of gains.
• The Nasdaq Composite jumped 1.5%, erasing all losses since April 2 when President Trump announced “reciprocal” tariffs.
• All three major averages are on track for their second straight winning week, with the S&P 500 up 1.4%, the Dow rising 1.6%, and the Nasdaq advancing 1.9% week-to-date.

Earnings season progress: Corporate America continues to outperform analyst expectations despite growing economic concerns.

• Approximately two-thirds of S&P 500 companies have reported quarterly results, with 76% exceeding earnings estimates according to FactSet data.
• Tech sector stocks rallied earlier in the week after strong results from Meta Platforms and Microsoft reinvigorated enthusiasm for artificial intelligence investments.

What’s next: Investors await Friday’s April jobs report as a key indicator of economic health amid growing concerns about tariffs and inflation.

• Economists expect a significant slowdown, projecting just 133,000 new jobs added in April compared to 228,000 in March, according to Dow Jones polling.
• The unemployment rate is forecast to remain unchanged at 4.2%.