Dear Valued Clients and Friends,
Staying on top of today’s fast-moving markets is more important—and more challenging—than ever. With headlines about jobs, tariffs, and global uncertainty dominating the news, it’s easy to feel uncertain about what’s next. At Advanced Wealth Management, our mission is to bring you clear, timely insights that help you make smart decisions and keep your long-term goals in focus—no matter what the headlines say.
In this week’s update:
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Why the latest jobs data spooked markets
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Where new tariffs might take the economy—and your investments
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Which companies are beating the odds (and which are stumbling)
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What we’re watching most closely for your portfolio this month
This week’s update cuts through the noise, highlighting the market moves that matter, what’s driving them, and how we’re thinking about opportunities and risks ahead. Whether you’re concerned about volatility, curious about Fed policy, or simply want perspective on your portfolio, we’re here to help.
Markets Slide on Weak Jobs Data and New Tariffs: Weekly Recap & Outlook Executive Summary
- Stocks dropped as July jobs numbers missed expectations and the Trump administration unveiled steep new tariffs.
- Labor market revisions painted an even weaker economic picture, adding to fears of a slowdown.
- Tariffs hit Canada, Japan, Europe, and transshipments—China faces a key deadline August 12.
- Tech, crypto, and chemicals took the brunt of the selling, though select names outperformed.
- Investors are watching: Fed policy prospects, trade negotiations, and key upcoming earnings.
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Last Week in Review
Jobs Report Disappoints, Market Reacts
The July nonfarm payrolls report stunned Wall Street, with just 73,000 jobs added—well below forecasts of 102,000. More troubling were the dramatic downward revisions to May and June, cutting an additional 258,000 jobs. The unemployment rate ticked up to 4.2% from 4.1%, while labor force participation slipped to 62.2%.
“Overall, it’s not a great report,” said Kevin Gordon, senior investment strategist at Schwab, reflecting a broad sense of disappointment.
Markets took the news hard, with the S&P 500 falling 1.6% Friday and Treasury yields plunging on renewed hopes for a Fed rate cut in September (now seen as a 55% chance, up from 37%).
Trade Tensions Escalate: New Tariffs Announced
President Trump announced a fresh set of tariffs, ramping up trade tensions:
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35% tariffs on Canadian goods not covered by existing agreements
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15% tariffs on Japanese and European imports
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40% on transshipments—goods routed through third countries to bypass tariffs
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Mexico got a 90-day extension
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China has until August 12 for a possible last-minute deal
The announcement sent shockwaves through global markets, as investors feared new supply chain disruptions and higher costs for businesses and consumers.
Earnings Highlights: Big Tech, Energy, and Crypto in Focus
Apple (AAPL) fell over 2% despite beating expectations, as investors remain wary after Tim Cook highlighted AI spending and possible acquisitions. Amazon (AMZN) dropped 8% on weaker cloud growth and a cautious outlook. Coinbase (COIN) fell double digits, tracking declines in Bitcoin and risk assets. Eastman Chemical (EMN) plunged 19% on disappointing results, while Monolithic Power (MPWR) surged 10% on a strong beat and raised guidance. Exxon Mobil (XOM) and Chevron (CVX) both edged lower despite earnings beats, as energy prices and revenues dipped.
Market Performance Recap
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Dow Jones: -1.23% Friday; -2.92% for the week
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S&P 500: -1.60% Friday; -2.36% for the week
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Nasdaq: -2.24% Friday; -2.17% for the week
What Does This Mean for Investors?
Short-term volatility remains elevated. With both jobs data and trade news disappointing, expect continued swings in risk assets. Weak labor and soft inflation increase the chance of a Fed rate cut, potentially cushioning the downside for stocks. Trade remains the wild card; last-minute deals could still emerge, especially with China facing an August 12 deadline. Stock selection matters: some companies (like Monolithic Power) are still surprising to the upside, even as broader risk appetite wanes.
Looking Ahead: What to Watch This Week
Trade developments will continue to move markets, especially any news on China or last-minute trade deals. Key earnings reports from Advanced Micro Devices, Disney, Super Micro Computer, McDonald’s, Eli Lilly, and Uber are on the calendar. Important economic data include the ISM Services PMI—a key gauge of the health of the U.S. services sector—and Treasury auctions, especially the 10-year note on Wednesday. With the next Fed meeting in September, keep an eye on any comments from policymakers.
Key Takeaways
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Stay diversified: Market volatility is elevated. A balanced approach can help manage risk.
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Don’t panic on headlines: Trade negotiations and economic reports will likely swing both ways in coming weeks.
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Opportunities in quality: Focus on companies with strong balance sheets and resilient earnings.
Frequently Asked Questions
Q: Are new tariffs likely to stick, or could they be rolled back?
A: There’s always a chance for last-minute deals, especially with key deadlines approaching. However, uncertainty will remain until concrete agreements are reached.
Q: Should I be worried about my portfolio after a week like this?
A: Short-term drops can be unsettling, but maintaining a diversified portfolio and focusing on long-term goals is key.
Q: Will the Fed cut rates next month?
A: Markets now see a 55% chance, but it depends on how incoming data and trade developments unfold.
Further Resources & Links
At Advanced Wealth Management, our goal is to empower you with clear, actionable knowledge. If you have additional questions or need personalized guidance, please reach out to our Boutique Family Office™ team.
Warm regards,
Tony Gomes, MBA
CEO and Founder
Advanced Wealth Management
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How We Can Help You
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Contact AWM today to schedule a confidential consultation and connect with an advisor who can help you achieve your financial goals. For assistance, reach out to us at Service@awmfl.com.
Thank you for your continued trust and engagement.
Tony Gomes, Author, MBA
CEO and Founder
Advanced Wealth Management
Content Disclosure: The information here is general and educational. It is not a substitute for professional advice and does not constitute a recommendation. Forecasts and opinions are subject to change.
