U.S. stock futures fell sharply as investors reacted to significant policy changes and corporate earnings disappointments. The Dow, S&P 500, and Nasdaq all faced notable declines in pre-market trading after sweeping tariffs were announced by former President Trump, raising uncertainty about the global economic outlook and fueling concerns about rising costs for businesses and consumers.

The market’s negative sentiment was compounded by investor disappointment over Amazon’s latest financial results. Despite Amazon reporting robust second-quarter revenue of $167.7 billion—a 13% increase from the previous year and ahead of Wall Street expectations—shares tumbled over 3% in after-hours trading. The earnings per share were $1.68, well above analyst forecasts, and net income climbed to $18.2 billion. Top-line growth was impressive, particularly in Amazon Web Services, which posted $30.9 billion in revenue, yet the heavy capital expenditures for AI and cloud capacity expansion fueled worries about slimmer future margins.

Amazon’s guidance for the next quarter was strong, with anticipated sales between $174 and $179.5 billion, topping consensus forecasts. However, rising operational costs, high investment in AI infrastructure, and indications that part of Amazon’s corporate workforce may shrink as automation grows, tempered investor enthusiasm.

Elsewhere, broader market jitters continued as new trade barriers threatened to disrupt global supply chains. The prospect of retaliatory tariffs and a possible escalation in trade tensions overshadowed otherwise solid performances from technology and industrial sectors in recent weeks.

Investors are now weighing the immediate pressure from tariffs against the longer-term growth narrative for major tech companies. As the dust settles, market participants will be closely watching policy developments and corporate commentary for signs of stability or further volatility in the sessions ahead.