Table of Contents

• US Labor Market

• Amazon

• Intel

Top Stories Today

Economy & Finance

US Labor Market

The U.S. labor market experienced a notable slowdown in July, with only 114,000 jobs added, falling short of the expected 180,000. The unemployment rate unexpectedly rose to 4.3%, the highest since October 2021. This data caused significant market reactions, with the S&P 500 and Nasdaq dropping sharply. The figures have intensified the economic debate in the U.S., with criticism directed at the Federal Reserve's recent decision to hold interest rates. Policymakers are closely monitoring the situation, hoping to achieve a "soft landing" by normalizing inflation without triggering a recession. Concerns have been raised about the timing of potential rate cuts, with some suggesting that the Fed should act sooner rather than later.

Technology

Amazon

Amazon's stock fell after the company reported lower-than-expected second-quarter earnings and a cautious outlook for the third quarter. The company noted that shoppers are being more careful with their spending, opting for lower-priced items when possible. Despite the misses, AWS, performed well with $26.3 billion in revenue, exceeding predictions. AWS remains a bright spot for Amazon, with growth potential in generative AI. Amazon also highlighted its significant investments in building out AI capabilities, including expanding AWS data centers and developing proprietary chips.

Intel

Intel's stock dropped nearly 28% on Friday, marking its worst day since 1974, following the company's decision to suspend its dividend and announce significant workforce reductions. The moves are part of an effort to fund a costly turnaround for its chip-making business, as Intel struggles to catch up with competitors like Taiwan's TSMC. The company plans to cut 15% of its jobs, raising concerns about its ability to regain its market position. Despite these measures, Intel still faces increased costs and pressured profit margins. The company's market value plummeted by about $35 billion, with its shares reaching an 11-year low. Intel's turnaround plan includes a $100 billion investment in U.S. factories and seeking external clients for its manufacturing services, but analysts warn the recovery could take years.

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