Stock Market Summary – August 01, 2025

President Donald Trump fired Bureau of Labor Statistics commissioner, Erika McEntarfer, citing manipulation of job data. The decision came after the bureau reported that job growth in the U.S. had significantly slowed, with only 73,000 nonfarm jobs added in July, well below market expectations. Due to this, investors were also wary about buying stocks on Friday, with the S&P 500 falling nearly 2%.

Economists say the U.S. job market has hit a ‘wall’, with job growth averaging only 35,000 in the past three months. Job growth has largely been concentrated in the health care and social assistance sectors. The uncertainty created by Trump’s changing approach to tariffs is leading many businesses to cut back on hiring.

Goldman Sachs highlights Aon as a top stock pick for August, despite the global market downturn. Shares of Aon could rise 21% from their current price. Other Goldman top stock picks include Pinterest, with an estimated rally of 11%, and Duke Energy, with potential for a 9% rise.

In relation to Big Tech earnings reports, Apple beat profit and revenue expectations with the largest sales growth since late 2021. Unfortunately, Amazon fell short of expectations for the current quarter but surpassed estimates for the previous three-month period.

Stock futures dropped as traders awaited the monthly U.S. jobs report and evaluated President Trump’s new tariffs. The tariffs, ranging from 10% to 41%, are expected to kick in next week.

Furthermore, hiring slowed significantly in July, with a Dow Jones estimate of only 100,000 job growth, marking the smallest gain since October 2024. This data indicates a contracting job market that is not keeping pace with population growth.

U.S. stocks varied in performance in the wake of stronger-than-expected full-year guidance from certain companies and disappointing forecasts from others. Consumer products corporation Kimberly-Clark gained about 4%, while tech stocks struggled with the drop in shares of companies like chipmaker Marvell Technology and IT services provider DXC Technology. Mortgage lender Rocket Companies saw shares surge by 13% following results that surpassed Q2 expectations.

In contrast, shares of the insurance giant UnitedHealth shed more than 3% following their announcement of a new CFO appointment, and Amazon slumped more than 7% after forecasting Q3 operating income below analyst estimates. Shares in Reddit rose by 21% after beating Q2 earnings expectations. In the crypto market, Coinbase fell by 15% after Q2 revenue missed estimates, and Bitcoin fell by 3% to $113,231.41.

Meanwhile, Carter Worth highlighted the SPDR S&P 500 ETF’s level of support amid the market sell-off, noting potential future downside. In reaction to a weaker-than-expected jobs report and new tariffs, Jim Cramer recommended buying Amazon shares, terming the decline an “amazing buying opportunity,” although he expressed concerns about Apple’s AI strategy.

Finally, Palantir landed a $10 billion U.S. Army contract for software and data services, aimed at meeting growing warfare demands over the next decade.