Dow Jones futures drop with trade tariffs souring sentiment and US NFP on tap

• Dow Jones futures anticipate a negative session opening with the index falling more than 1%.
• Concerns about tariffs and investors' caution ahead of July's  NFP report are weighing on demand for equities.
• Renewed fears of trade tariffs have offset the enthusiasm about the upbeat earnings of tech giants.

Dow Jones futures point at a negative opening on Friday as a new list of trade tariffs by US President Trump offset investors' enthusiasm about the upbeat earnings of the US tech giants, as the market shifts its focus to July's Nonfarm Payrolls report.

Futures of the Dow Jones index trade 1.05% lower at the time of writing, the same decline shown by the S&P 500 Index futures, while the Nasdaq remains the biggest loser with a 1.25% decline.

Trade tariffs hurt investors' appetite for stocks

US President Trump put an end to the globalization era on Thursday, signing an executive order to impose trade tariffs on virtually every nation with levies ranging from 10% to 41%, and 50% levies for Copper, Steel, and Aluminium exports. Investors remain wary that Trump's trade policy will contribute to boosting inflation and hampering economic growth.

This news has eclipsed the upbeat quarterly earnings posted by Amazon, Meta, Apple, and Microsoft released earlier this week, which feeds investors' confidence in the Artificial Intelligence sector's growth potential.

In the data front, today, all eyes will be on the US Nonfarm Payrolls report. Investors are expecting signs of a moderate cooling of the labour market to keep hopes of a September rate cut alive. A strong NFP reading would back the central bank's hawkish stance and send equities lower.