U.S. Weekly Review | Stock Market Falls on Trump Tariffs, Jobs Report; Microsoft, Meta, Amazon Also in Focus

The stock market sold off this past week on new Trump tariff hikes, a weak jobs report and a slew of big earnings.

Microsoft, Meta Platforms, Inc. beat Q2 views and guided higher, but Amazon.com guided low on Q3 earnings. All offered strong capital spending forecasts, a good sign for AI chip, hardware and related stocks. Apple rose while ARM Holdings and Spotify Technology S.A. were notable losers.  Palo Alto Networks will buy CyberArk for $25 billion in a big cybersecurity deal. Core PCE inflation turned hotter while the latest jobs report was weak.

Stocks Retreat On Trump Tariffs, Jobs Report

The S&P 500 and Nasdaq hit fresh highs during the week, but ultimately fell sharply, mostly Friday on new Trump tariffs and a cool jobs report. A divided Fed and mixed earnings weighed on much of the market earlier. All the major indexes closed below their 21-day lines for the first time in months, with the Dow also tested its 50-day line and the Russell 2000 undercutting it. Treasury yields plunged, with nearly all of it coming on Friday.

Jobs Report Upends Fed Outlook

Friday's jobs report was a game-changer, disproving the Federal Reserve's assessment two days earlier that labor market conditions "remain solid." July's payroll miss wasn't that bad, but May-June gains were slashed by a combined 258,000. The private sector added 83,000 jobs in July vs. 100,000 forecasts, but June's gain was revised to just 3,000. Government cut payrolls by 10,000 in July, after June's initially reported gain of 73,000 was revised to 11,000. The unemployment rate ticked back up to 4.2%. Fed Chairman Jerome Powell said the unemployment rate is the key number, but odds of a Sept. 17 rate cut more than doubled to 79% on Friday. A big question is whether so-so private-sector hiring in July reflects improvement after April's tariff shock, or whether July data will be revised lower too.

Meta Earnings Crush Views

Meta Platforms (META) surged 11% Thursday to a record high after the Facebook parent reported Q2 earnings jumped 38% to $7.14 per share vs. estimates of $5.88 per share. Sales increased 22% to $47.52, also solidly beating. The strength of Meta's core business is giving CEO Mark Zuckerberg breathing room to spend exorbitantly on his ambitions to develop AI superintelligence. "The capex/investment pace is very aggressive, but the company is doing this from a clear position of strength," Evercore ISI analyst Mark Mahaney wrote after the report.

Amazon Profit Guidance Disappoints

Amazon.com (AMZN) reported a 33% EPS gain while revenue climbed 13% to $167.7 billion, both comfortably beating. Amazon Web Services saw a 17.5% revenue rise, slightly topping, but significantly slower than Google Cloud and Microsoft's Azure. The e-commerce and cloud computing giant guided up on Q3 sales, but down on operating profit. Shares tumbled Friday from a six-month high.

Microsoft Gets Cloud Lift

Microsoft (MSFT) smashed Wall Street's fiscal Q4 targets with a 24% EPS gain as revenue rose 18% to $76.44 billion, with both showing accelerating growth for a second straight quarter. The Azure cloud platform revenue grew 39%, beating its target of 34%-35%. Microsoft guided fiscal Q1 revenue up to a 15% gain with Azure growth of 37% in constant currency. The Dow tech giant also gave a bullish capital spending target. Microsoft stock spiked to a record high on the news.

Chip Earnings Mostly Disappoint

Chip designer Arm Holdings (ARM) and wireless chip leader Qualcomm (QCOM) tumbled after their June-quarter reports. Arm sank on weaker-than-expected earnings guidance for the current quarter. Qualcomm fell on soft smartphone chip sales as Apple (AAPL) transitions to its own modem chips for the iPhone. Semiconductor equipment makers KLA (KLAC) and Lam Research (LRCX) fell despite posting better-than-expected results. Monolithic Power Systems (MPWR) and Rambus (RMBS) rose after beating Q2 views.

Spotify Hits Wrong Note

The streaming music leader added 8 million premium subscribers to 276 million, with 696 million monthly active users, both beating. But Spotify Technology (SPOT) reported a surprise loss in Q2 while a 21% revenue gain to $4.75 billion missed. Sales guidance also fell short. Spotify stock fell sharply.

Palo Alto Will Buy CyberArk

Palo Alto Networks (PANW) said it will buy CyberArk (CYBR) in a $25 billion mostly stocks deal, its largest since Nikesh Arora became CEO in 2018. CyberArk is a leader in privileged access management, while expanding into Internet of Things via a 2024 acquisition. CyberArk stock jumped while Palo Alto plunged. The news seemed to buoy shares of Rubrik (RBRK) and SailPoint (SAIL), while some others fell.

Check Point Software (CHKP) said Q2 EPS rose 9% while revenue climbed 6% to $665 million, both edging by estimates. But billings came in light. Shares dived.

Robinhood, Coinbase Miss On Key Metrics

Robinhood (HOOD) reported that Q2 EPS doubled while revenue jumped 45%, both beating estimates. Transaction-based revenue and options revenue also top for the free trading app. Cryptocurrency revenue spiked 98%, but fell short of expectations. Monthly active users rose year-over-year to 12.8 million, but missed views for 13.7 million. HOOD stock fell sharply after surging to record highs. Coinbase (COIN) posted a major earnings beat. But the crypto exchange missed forecasts for total revenue, transaction revenue, subscription revenue and stablecoin revenue. Total trading volume climbed 5% from last year, but was down $156 billion from Q1. COIN stock dived Friday, still up strongly in 2025.

Cruise Lines Chart Different Courses

Royal Caribbean (RCL) reported a better-than-expected 36% EPS gain for Q2. But a 10% revenue gain to $4.538 billion slightly missed, while the cruise line giant guided low on Q3 revenue. Shares tumbled from near record highs. Norwegian Cruise Line (NCLH) missed on the top and bottom line, but gave a bullish revenue forecast. Shares cleared a handle buy point from a very deep base.

Boeing Narrows Loss

Boeing (BA) reported that its loss narrowed from last year while Q2 revenue increased 35%, both beating. Commercial airplane revenue spiked 81% while defense sales climbed 10%, also topping. The Dow manufacturer also received a boost from the U.S. trade deal with the EU, which includes an aerospace tariff exemption. Meanwhile, Boeing could face a defense production strike as early as Monday, after 3,200 IAM District 837 members rejected a contract proposal last week. Boeing on Thursday reportedly sent its "last, best and final" contract offer to the union, but has yet to hear back. CEO Kelly Ortberg said Tuesday that he "wouldn't worry too much about the implications of the strike." BA stock retreated almost 5% on the week.

Aerospace Alloy Firms Dented

Howmet Aerospace (HWM) beat forecasts with record profit and revenue for the quarter. The company lifted the lower end of its revenue outlook to $8.08 billion from $7.88 billion and guided earnings up at the midpoint. Howmet still tumbled on earnings, but regained its 50-day line to end the week. Carpenter Technology (CRS) plunged below its 50-day line as the alloy seller topped on earnings but missed on revenue. ATI (ATI) also delivered mixed results, with revenue missing forecasts despite a 67% jump in aerospace and defense sales. The midpoint of its Q3 earnings outlook was below expectations. Shares dived below its 50-day line.

Heavy Construction Firms Pressured

Quanta (PWR) reported second-quarter sales rose 21% to $6.77 billion with revenue climbing 31%, beating views. Quanta raised its full-year sales guidance, seeing strong demand for energy projects and reshoring trends. The stock reversed lower, however. MasTec (MTZ) also beat with Q2 sales up 20% to $3.545 billion as earnings popped 49%. The company, citing an "exceptionally strong demand climate," raised full-year guidance. Yet, shares fell Friday. Fluor (FLR) missed sales and profit estimates and cut its 2025 forecast from $2.25-$2.75 to $1.95-$2.15 per share. Sales fell 6% as adjusted EPS slid 49%. Fluor cited subcontractor design errors at three projects and a shift in expected capital spending from some customers. Shares sold off Friday.

Oil Giants Report Big Profit Declines

U.S. supermajors Chevron (CVX) and Exxon Mobil (XOM) reported second-quarter earnings and revenue early Friday, with both companies seeing big year-over-year profit declines. Chevron's EPS tumbled 31% while sales fell 12% to $44.82 billion. Exxon earnings dropped 23% to while revenue was off 12% to $81.51 billion. Both Exxon And Chevron focused on share buybacks and dividends in Q2, returning $9.2 billion and $5.5 billion to shareholders, respectively. The two rivals have pledged to work closely with each other in major global oil exploration projects. That alignment has led to some chatter of an industry-bending Exxon-Chevron merger.

Stock Market News In Brief

GeneDx (WGS) crushed Q2 EPS views and easily beat with a 46% revenue gain to $102.7 million. The genetic testing firm also guided higher. Shares skyrocketed.

Exelixis (EXEL) dived after an 11% revenue drop fell short and the biotech guided full-year sales slightly below views. An 11% EPS drop topped consensus.

Cloudflare (NET) said Q2 earnings were 21 cents a share, up a penny from a year earlier. Revenue climbed 28% to $512.3 million. Both modestly beat views. Cloudflare guided higher on Q3 revenue.

SoFi Technologies (SOFI) reported Q2 adjusted EPS of 8 cents per share, up from 1-cent profit a year earlier and topping estimates. Revenue rose 44% to $858 million, easily beating. The fintech raised revenue and membership growth guidance. Shares made big moves, ultimately little changed, holding the 21-day line.

Booking Holdings (BKNG) earnings rose 32% vs. a year earlier while revenue grew 16% to $6.8 billion, both beating and with growth accelerating. The online travel agency guided slightly lower on Q3 revenue but said demand was "steady" overall. Booking stock wavered but ultimately fell modestly.

Figma (FIG) rocketed after its initial public offering. Shares of the design software maker surged 250% from its above-range price of $33 a share to close its first day of trading at 115.50.

Vertiv (VRT) surged after the data center infrastructure provider beat second-quarter estimates and raised its full-year outlook. On a year-over-year basis, Vertiv earnings increased 42% while sales rose 35%.

Cadence Design Systems (CDNS) jumped after the electronic design automation software firm topped Q2 estimates and raised its full-year outlook. Cadence earnings rose 29% in Q2 while sales increased 20%.

Celestica (CLS) topped second-quarter estimates with EPS up 54% to $1.39 and sales up 21% to $2.89 billion. The contract electronics manufacturer also raised guidance for Q3 and the full year.

Roku (ROKU) delivered better-than-expected second-quarter revenue and a surprise profit. The streaming video platform also guided above estimates for the current quarter and full year. But Roku stock fell after the report.

Trane Technologies (TT) topped estimates with an 18% increase in earnings on 8% revenue growth. The heating and cooling company hiked its full-year earnings and revenue guidance. But shares tumbled back to the 50-day line.