Key Takeaways
- S&P 500 futures plunged 1.2% to their lowest point of the session, reflecting broad market concerns driven by new US tariffs and upcoming jobs data.
- The US Dollar is poised for its best week in three years as markets anticipate crucial payroll data, which could further influence Federal Reserve policy.
- Exxon Mobil (XOM) shares climbed 1.6% after its Q2 adjusted earnings of $1.64 per share surpassed analyst expectations of $1.56, despite a four-year low in profit.
- AngloGold Ashanti (AU) reported a significant 21% year-over-year increase in second-quarter gold production, reaching 804,000 ounces.
- France's CAC 40 Index dropped 2% to 7,615.64, as European markets react negatively to new US tariff measures.
Global financial markets are experiencing a downturn today as S&P 500 futures dropped by 1.2%, hitting the lowest point of the session. This decline comes amidst growing concerns over new US tariff announcements and the impending release of July's nonfarm payroll data. The broader market sentiment is cautious, with analysts closely watching economic indicators and geopolitical developments.
The US Dollar is on track for its strongest weekly performance in three years, driven by anticipation of the upcoming payroll data. Economists are forecasting a moderation in hiring, with consensus estimates for nonfarm payrolls at 110,000 for July, down from 147,000 in June. The unemployment rate is expected to tick up marginally from 4.1% to 4.2%. A significant cooling of the jobs market could pressure the Federal Reserve to reconsider its interest rate stance.
In corporate news, Exxon Mobil (XOM) saw its shares climb 1.6% following a strong second-quarter earnings report. The energy giant reported adjusted earnings per share of $1.64, exceeding the estimated $1.56. Despite this beat, Exxon Mobil's Q2 profit of $7.1 billion was its lowest in four years, primarily due to declining oil prices amid increased OPEC+ production. The company also announced it is on pace to purchase $20 billion in shares this year, with $9.2 billion in shareholder distributions, including $4.3 billion in dividends and $5 billion in share buybacks.
Meanwhile, AngloGold Ashanti (AU) reported a robust second quarter, with gold production increasing by 21% year-over-year to 804,000 ounces. The company's free cash flow surged by 149% to $535 million, and its adjusted net debt fell 92% to $92 million. This strong performance was attributed to higher gold prices, disciplined cost control, and contributions from key operations like Obuasi and Geita.
European markets are also feeling the pressure, with France's CAC 40 Index dropping 2% to 7,615.64. This decline is largely influenced by new US tariffs, which include a 10% global baseline and higher duties for countries without formal trade deals. The imposition of these tariffs has raised concerns about global economic growth and trade stability. Other European indices, such as Germany's DAX and the Stoxx Europe 600, also experienced significant drops.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.