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The Magnificent 7 refers to seven of the tech industry’s biggest players — Apple, Microsoft, Tesla, Nvidia, Amazon, Meta, and Alphabet. Together, they hold an impressive amount of influence over technology, culture, trends, and communication. Many of these companies have pushed through major crises, such as the Great Recession and the COVID-19 pandemic, and enjoyed greater success afterward. Suggested Reading When you think about the Mag 7’s history, buying their stock might seem like a safe bet. But before you commit any capital, it’s essential to weigh potential risks, assess market conditions, and understand where these companies may be headed.   Related Content How Mag 7 made its way into big tech The Mag 7 rose to dominance through innovation, visionary leadership, global scale, and diversified revenue streams. While Microsoft developed some of the first computer programs, Apple transformed mobile tech, and Tesla popularized electric vehicles (EVs). Amazon jumped on the online shopping boom, reshaping retail, while Meta built a global social media empire with billions of users. While not every project succeeded — such as Google+ — these companies consistently took calculated risks, learned how to adapt, and scaled effectively to stay ahead of the curve. What is powering Mag 7’s continued growth? While the Mag 7 companies’ past performances play a role, their growth ultimately relies on each firm’s ability to adapt, innovate, and invest in different markets. They push the limits of modern technology while introducing customers to new products and solutions. Continuous innovation across industries Each company in the Magnificent 7 fulfills a niche in its field. For example, Nvidia develops chips and hardware for artificial intelligence (AI), driven in part by demand for AI hardware, which was spurred by innovations such as ChatGPT in 2022. The company has seen a 22% increase in profits since then, and its stock briefly reached $4 trillion in July 2025. Microsoft Azure offers a wide range of services, including app building, cloud migration, knowledge mining, and data analytics. Microsoft’s hardware and software solutions have built a world-renowned company that regularly pays dividends. Meta’s ecosystem extends far beyond Facebook, and its portfolio includes platforms like Instagram, Threads, Facebook Messenger, and virtual reality. In July 2025, the company invested $3.5 billion in EssilorLuxottica SA as part of its commitment to introducing AI smart glasses to more consumers. This move underscores Meta’s ambition to shape the future of social interaction through wearable tech.  As social media reshapes how people connect, mobility is also undergoing its own revolution. Tesla is known for vehicles equipped with advanced driver-assistance features, including the Cybertruck. The vehicles’ advanced technology, sleek appearance, and high price tag have made them status symbols. Likewise, Apple attracts influencers and celebrities with smartphones, tablets, and other gadgets. Amazon, meanwhile, earns billions of dollars in net sales each year from consumer products, movies, TV shows, music, and groceries. In March 2025, the company made its mark on pop culture by becoming co-owners of the James Bond franchise. While Amazon dominates the world of e-commerce and entertainment, Alphabet commands the digital realm through information and search. This tech giant reported $90.2 billion in profits during the first quarter of 2025, signifying Google’s status as the world’s biggest search engine. Expanding global and emerging market opportunities These companies don’t just excel in their current markets; they thrive by staying ahead of trends and consistently expanding into new markets. When Microsoft launched in the 1980s, it was a software company focused on personal computers. Over time, it’s grown into a global technology provider, offering products and services across cloud computing, productivity tools, gaming, search engines, and AI. Tesla has followed a similar path of diversification. While the company initially focused on electric sports cars, its line expanded to include electric sedans and related services, such as insurance, home charging, vehicle maintenance, and energy solutions. Being able to diversify helped these companies remain competitive and relevant in a fast-changing market. Challenges to Mag 7 growth On the surface, the Mag 7 has a promising future. However, new laws, cultural shifts, and growing competitors could knock any of these companies out of the ranks. Kmart, Blockbuster, and Borders once looked invincible, but those companies either disappeared or filed for bankruptcy, and the same could happen to today’s leaders.  Even regulatory changes, such as antitrust enforcement, data privacy legislation, or the end of tax incentives for certain technologies, could directly impact revenue streams.  Regulatory and policy environments Federal tax credits historically incentivized EV purchases, making them more affordable for many consumers. However, legislation, such as the Big Beautiful Bill, ended some of these tax credits, making it more difficult for buyers to afford vehicles like Teslas.  Meta is another example of how government policies can impact businesses. The company faced an antitrust lawsuit for owning multiple social networks. Broader trade tariffs also have influenced the stock performance of companies within the Mag 7.   Looking ahead, stricter privacy regulations could ultimately reshape how users interact with social media and how platforms monetize data.  Competitive and market evolution Every business needs to adapt to stay alive. With more companies offering cloud computing, AI tools, advanced software, and electric vehicles, the Mag 7 needs to work hard to maintain its competitive edge. Otherwise, other businesses could sway customers with lower prices or exclusive tech. Consumer preferences also change over time. AI programs and electric vehicles are currently experiencing rapid growth, and while they could maintain their popularity for decades, they also face the slight risk of eventually becoming outdated. Furthermore, platforms that once dominated can quickly lose relevance, as seen with several social media stocks in recent years. With shareholders expecting a consistent rise in profits, Mag 7 businesses could start chasing trends or invest in failed innovations in a bid to stay relevant. While this doesn’t mean you should sell all your shares — Google has hundreds of abandoned projects, and it’s still as relevant as ever — companies that follow trends instead of starting them could eventually fall behind. On another note, economic downturns often

Opinions expressed by Entrepreneur contributors are their own. When he was 15 years old, Max Clarke would wake up to find blood pouring from his nose. The nosebleeds were relentless, sometimes happening multiple times a week. Doctors couldn’t diagnose it. By the time Clarke got to university, he was exhausted and still without answers. So he did something about it. He changed his diet. Started meditating. Practiced yoga. Took supplements. Focused on sleep. “I’ve never had a nosebleed since,” Max Clarke says. “Doctors were saying I needed surgery, but I knew there had to be another way.” That experience gave him a mission — to take the guesswork out of wellness by helping people find what actually works for them, without having to sort through endless advice, or no advice at all. Related: Nobody Was Talking About Nasal Breathing for Sleep Until This Former NFL Player Built a Brand Around It: ‘You Feel So Much Better’ From importer to innovator Clarke launched his company, Healf, with his brother in 2021. It started with curating the best wellness products from around the world—the kinds of things he had used to heal himself—and making them available in the UK, where options were limited. But that was just the beginning. “We were hearing the same thing again and again from customers,” Clarke says. “They’d say, These are all amazing products, but how do I know what’s right for me?’” So, Clarke and his team built a platform called Healf Zone, which uses at-home blood testing kits and wearable integrations to help users understand what’s happening inside their bodies. Then, using AI and machine learning, the system looks at the data and recommends personalized wellness products, nutrition plans, and lifestyle tweaks. Build a company by solving one problem at a time Rather than setting out to launch a wellness empire, Clarke tackled challenges as they emerged. First, they addressed the lack of product quality. Then, the limited access to global products in the UK. After that, they helped customers learn which products were right for them. Each solution led to the next phase of the business. The takeaway: Don’t try to launch the perfect company out of the gate. Build by listening and iterating. “You don’t need to know how it’s all going to come together. You just need to solve the next problem.” Related: What This Founder Thinks Most Supplement Brands Get Wrong—and How He Fixed It With David Beckham Be obsessed with your customer Since launch, the business has grown to more than $100 million in annual revenue in under four years. Clarke credits this to customer obsession as a core principle. That includes same-day deliveries, hand-carrying orders to celebrities and athletes, and responding to urgent requests in real time. One example is a billionaire aboard a yacht at the Cannes Film Festival, who urgently requested a specific product the company sold. Clarke’s team personally flew it from the UK to the French Riviera, making the delivery just in time for the party. “We’ll do whatever it takes,” Clarke says. “One of our standards that we live by is never settle.” Create a culture that works hard Clarke built the company around five core principles: work harder than anyone else, never settle, obsession beats talent, stronger together, and the Healf lifestyle—a philosophy rooted in prevention over treatment and living well through movement, nutrition, mindfulness, and sleep. Employees work seven days a week. Performance reviews are done every three months. Clarke personally does one-on-ones with team members on Sundays. His advice for other entrepreneurs is to build your culture early and protect it. Be transparent about what you expect. Reward results, not titles. Hire for heart, not just smarts Clarke learned some of those lessons the hard way. Early on, he put too much weight on advice from industry veterans and occasionally hired for pedigree instead of passion. Now, he trusts his instincts and not just the depth of their resume. And Healf has tweaked the interview process. “We were hiring people who were incredibly smart, incredibly driven, incredibly behind the mission, but they just didn’t have that depth that’s needed when things get really hard. So now we’re trying to hire people who we say have big hearts.” Act like it’s still day one Despite explosive growth, its ambitions are bigger than ever. The company is getting ready to expand internationally, and longer term, Clarke wants to build physical experiential wellness studios in major global cities that blend diagnostics with community. For him, the mission hasn’t changed. It’s still about helping people feel better, faster — and giving them the tools to do it without having to guess. “Even now, everyone in the company is very much behind this idea that it’s still day one,” Clarke says. “We’re not even scratching the surface of how much value we can add.” Clarke doesn’t see Healf as a supplement brand, nor a biohacking platform. He sees it as a category-defining system to turn data and signals from your body into intelligent actions. “Healf isn’t just here to play the game. We’re here to change it.” Read More

Disclosure: Our goal is to feature products and services that we think you’ll find interesting and useful. If you purchase them, Entrepreneur may get a small share of the revenue from the sale from our commerce partners. If your agency’s tech stack looks like a graveyard of subscriptions and browser tabs, you’re not alone. CRMs, funnel builders, invoicing software, schedulers—it’s a lot. And worse? None of it talks to each other. And then there’s Sellful. This all-in-one, white-label business suite is designed specifically for entrepreneurs and agencies who are tired of duct-taping 15 apps together just to run a business. For just $349.97, you’re getting lifetime access to a platform that would normally set you back nearly $1,500—and that’s before the monthly SaaS costs you’re already juggling. So what does it do? Almost everything, including websites, CRMs, email and SMS marketing, sales funnels, appointment schedulers, online courses, project management, POS, HR tools, and even AI-powered automation to tie it all together. There’s also a full-blown ERP system with client portals, contract signing, chat, and ticketing—all white labeled, so it looks like your own custom software. For agencies, it’s a no-brainer: Sellful lets you spin up client sites, automate invoicing, manage social posts, and even onboard new leads—all from one dashboard with your branding front and center. You get 10 sites/sub-accounts included, and each can have unlimited contacts, pages, products, and users. Whether you’re running a digital agency, launching an online education brand, or juggling eCommerce projects, Sellful is your tech cofounder. No code. No monthly fees. Just clean design, powerful features, and serious time-saving potential. Own your brand, simplify your backend, and scale like a boss. Get lifetime access to Sellful for just $349.97 (MSRP: $1,497) for a limited time. Sellful – White Label Website Builder & Software: ERP Agency Plan (Lifetime) See Deal StackSocial prices subject to change. If your agency’s tech stack looks like a graveyard of subscriptions and browser tabs, you’re not alone. CRMs, funnel builders, invoicing software, schedulers—it’s a lot. And worse? None of it talks to each other. And then there’s Sellful. This all-in-one, white-label business suite is designed specifically for entrepreneurs and agencies who are tired of duct-taping 15 apps together just to run a business. For just $349.97, you’re getting lifetime access to a platform that would normally set you back nearly $1,500—and that’s before the monthly SaaS costs you’re already juggling. So what does it do? Almost everything, including websites, CRMs, email and SMS marketing, sales funnels, appointment schedulers, online courses, project management, POS, HR tools, and even AI-powered automation to tie it all together. There’s also a full-blown ERP system with client portals, contract signing, chat, and ticketing—all white labeled, so it looks like your own custom software. The rest of this article is locked. Join Entrepreneur+ today for access. Read More

Opinions expressed by Entrepreneur contributors are their own. At the end of the day, a boutique law firm is a small business, which means that in addition to being an attorney, a founding partner is also a small business owner who must adopt a collective mindset. Our firm works because we work together; if you’re looking to level up your small business, you should be ready to wear multiple hats and rely on full-team collaboration. At Wigdor LLP, we prioritize collaboration both in and outside the courtroom. Here are four practical ways we foster a team-first culture — and why doing so is key for any founder looking to run a law firm like a business. 1. Host events outside the office Breaking away from the office often results in breakthrough thinking. Casual, off-site environments help our team relax, which yields more creative thinking. It also fosters stronger relationships and seamless collaboration once we’re back at our desks. When people get to know each other beyond their roles at work, they’re far more effective together in high-stakes moments. It was over a welcome lunch at a Mykonos-themed restaurant that one of our senior associates workshopped with the marketing team to craft an attention-grabbing quote about the implications of a new law that they were then able to pitch to a law journal — all springing from a discussion recapping the latest reality TV shenanigans. And we always mix up the teams at our annual summer tennis competition to balance skill levels and have found that working together on the court translates to more effortless collaboration once we’re back at the office. Related: Why There Is No Substitute for the Annual ‘Offsite’ With Your Team 2. Make team-building events do double duty We are quick to recognize when something can serve multiple purposes. Continuing legal education, also known as CLE, is a requirement in our field, but I encourage our attorneys to take these sessions in groups — and make sure to host at least five per year to make group learning accessible. We always host the sessions over lunch because no one ever seems to say no to a free sandwich. We see the importance of maximizing return on effort, so we like to take the continuing education content that our attorneys work so hard on and repurpose it. A one-hour-long meeting may start as a team-building event, but it lives on as multiple blog posts on our own site as thought leadership pieces that we can pitch to national business publications and as social media content, all helping us expand our firm’s digital footprint and establish our employees as experts. Related: How to Make Your Content 300% More Effective While Also Saving Time and Money 3. Ensure each case is a team effort At Wigdor, each case is assigned to at least one partner, one associate and one paralegal, allowing joint problem-solving and fresh perspectives. While some attorneys like to maintain full control and resist working together with their team, our law firm is different. The more minds deliberating solutions, the better — whether it’s a law firm or a small business. Paralegals and associates are in the trenches with partners, actively participating in the case from beginning to end. We further promote collaboration by hosting monthly status meetings so attorneys have insight into what other teams are working on, igniting ideas to benefit their own litigation. We have high expectations for everyone on the team and reward hard work. We challenge younger legal minds to participate more, from oral arguments to authoring legal news pieces. We could not do the work we do without the full team participating. One of our recent associate hires joined Wigdor specifically looking for the opposite experience of their previous firm, which was fully remote, not collaborative and felt very isolating. The associate wanted an environment where they could roll up their sleeves in person, working on big cases and learning from a more synergetic team. Since joining, they have had a full case load and multiple opportunities to join precedent-setting matters, which is something that would perhaps be reserved for partners at other firms. This model of cross-level collaboration, where diversity of thought is valued, is a powerful tool for any small business leader who wants to develop a confident, engaged team. Related: How to Transform Your Workplace Culture with Cross-Pollination 4. Encourage young leaders to discover their strengths One of my favorite things to do is to help early leaders lean into their unique skills. The key is to get them talking (taking them to a one-on-one lunch usually works) until you discover their affinities and then nurture those skills into expertise. When a senior associate mentioned their partiality for deposing witnesses, I recognized that their interrogative acumen and evaluative listening skills would make them the ideal person to lead the paralegal interview and hiring process — and we’ve built our strongest paralegal team to date. When it comes to paralegals, we hire them for two-year engagements to ensure they get full exposure to the legal process and better prepare them for law school. Once at the firm, they always have a seat at the table, literally. When we head to court for a trial, a seat at the plaintiff’s table is always reserved for the paralegal who has assisted on the case. They often spend months researching the matter — sometimes even helping to draft statements used in a briefing — and get to see their work used in action at a hearing. Offering hands-on opportunities to junior members, whether it’s a paralegal at a law firm or a first-time manager at a brick-and-mortar store, makes them feel valued and allows them to see how their hard work contributes to the team’s success. It may be my name on the door, but my firm would never prosper if I tried to do it all on my own. Prioritizing team building is the best way to improve employee happiness and

Disclosure: Our goal is to feature products and services that we think you’ll find interesting and useful. If you purchase them, Entrepreneur may get a small share of the revenue from the sale from our commerce partners. If you’ve ever thought, I should write a book about this, but then remembered you’re also running a business, managing clients, and keeping 47 tabs open just to stay afloat—well, same. That’s why Youbooks is a stunning tool. And right now, you can use it for life for just $49. This AI-powered non-fiction book generator was made for entrepreneurs, founders, coaches, consultants, and all-around busy people with a lot of know-how and no time to type it out. For less than one dinner out, you get lifetime access to a powerhouse writing platform that collaborates with multiple top-tier AI models (ChatGPT, Claude, Gemini, Llama—you name it). That means smarter content, sharper structure, and zero writer’s block. Youbooks doesn’t just spit out fluff—it builds full-on manuscripts up to 300,000 words, and it pulls in real-time research from the web to back up your ideas with facts, stats, and sources. Want your voice to shine through? Upload writing samples or internal documents so your final product reads like you—not like a robot. Whether you’re turning a coaching framework into a course companion, expanding a podcast series into a book, or publishing an industry guide to establish yourself as the expert in your niche, Youbooks makes it all possible—with full commercial rights to your content. Plus, every month, you get 150,000 credits to generate new books, upload your sources, and keep the content flowing. No upsells. No subscriptions. No ghostwriters ghosting you. Just you, your ideas, and a very smart machine helping you bring them to life. Your story is worth telling. Now it’s easier—and way cheaper—than ever to tell it. Get lifetime access to Youbooks for just $49 (MSRP: $540) for a limited time. Youbooks – AI Non-Fiction Book Generator: Lifetime Subscription See Deal StackSocial prices subject to change. If you’ve ever thought, I should write a book about this, but then remembered you’re also running a business, managing clients, and keeping 47 tabs open just to stay afloat—well, same. That’s why Youbooks is a stunning tool. And right now, you can use it for life for just $49. This AI-powered non-fiction book generator was made for entrepreneurs, founders, coaches, consultants, and all-around busy people with a lot of know-how and no time to type it out. For less than one dinner out, you get lifetime access to a powerhouse writing platform that collaborates with multiple top-tier AI models (ChatGPT, Claude, Gemini, Llama—you name it). That means smarter content, sharper structure, and zero writer’s block. Youbooks doesn’t just spit out fluff—it builds full-on manuscripts up to 300,000 words, and it pulls in real-time research from the web to back up your ideas with facts, stats, and sources. Want your voice to shine through? Upload writing samples or internal documents so your final product reads like you—not like a robot. The rest of this article is locked. Join Entrepreneur+ today for access. Read More

Ray Dalio, the 75-year-old billionaire founder of Bridgewater Associates, is officially stepping away from the hedge-fund firm he founded in 1975. Image Credit: Roy Rochlin / Stringer | Getty Images. Ray Dalio. A letter sent to clients last week revealed that Dalio sold his remaining shares in the firm to Bridgewater, The Wall Street Journal reported. He also gave up his seat on the board but intends to remain “a client and mentor,” he said in the note. Related: ‘The Best Advice That I Could Give Anybody’: Billionaire Ray Dalio Credits One Daily Habit With All of His Success Dalio launched Bridgewater five decades ago out of his two-bedroom apartment in New York City. During his tenure, he served as CEO, CIO and chairman, growing Bridgewater to one of the largest hedge funds in the world with $168 billion assets under management in 2019. Those assets fell to $92.1 billion at the end of last year after it twice capped its flagship Pure Alpha fund in an attempt to boost performance, several people familiar with the matter told WSJ. Dalio has a net worth of $16 billion, according to Bloomberg Billionaire Index. Related: The Business He Started in Response to a Frustrating Grocery Store Experience Surpassed $1 Billion in Sales and Counts Ray Dalio Among Its Investors Nir Bar Dea serves as Bridgetwater’s current CEO. Bob Prince, Greg Jensen and Karen Karniol-Tambour act as the firm’s co-CIOs. Dalio shared his perspective on his departure in a LinkedIn post published on July 31. “I have been asked a lot about how I feel about passing along Bridgewater after having started and built it over the last 50 years,” Dalio wrote. “Above all else, I am thrilled about it because I love seeing Bridgewater alive and well without me — even better than alive and well with me. That’s because I see this as [an] as-good-as-it-gets life cycle.” Read More

U.S. Trade Representative Jamieson Greer sounded a cautiously optimistic note on discussions with China on rare earth flows, following trade talks that further steadied ties between the economies. Greer said the key industrial components were a focus of negotiations in Stockholm last week that Beijing said led to an extension of their tariff truce. Without going into detail, he said the U.S. secured commitments about their supply on CBS’s Face the Nation aired Sunday. “We’re focused on making sure that magnets from China to the United States and the adjacent supply chain can flow as freely as it did before the control,” Greer said in the interview, which was taped Friday. “And I would say we’re about halfway there.” That assessment came some four months after China imposed export controls on rare earth magnets—used in products from home appliances to missiles—in retaliation for U.S. tariff threats. Beijing has agreed to speed up their shipments after Washington suspended sky-high levies on Chinese exports.  U.S. President Donald Trump is set to make the final call on maintaining the tariff truce, which expires Aug. 12, Greer said. “We’re working on some technical issues, and we’re talking to the president about it,” he said. Flows of rare earth magnets from China to the U.S. rose to 353 tons in June, up from just 46 tons in May, according to the latest customs data. Total shipments were still substantially lower than before Beijing launched export controls in early April.  Greer earlier said Trump’s trade team hopes to be done discussing magnets with China, after he and Treasury Secretary Scott Bessent wrapped up a third round of trade talks with Beijing in the Swedish capital end of July. If the U.S. can get over the magnets issue, it can move to a further discussion of the U.S.-China relationship, he added. The discussions have helped stabilize relations between the world’s two largest economies, although many frictions remain, including over the U.S.’ curbs on exporting advanced AI chips to its main competitor. Beijing authorities on Thursday summoned Nvidia Corp. to discuss alleged security vulnerabilities related to its H20 chips. The Trump administration only recently pledged to drop export restrictions on the less-advanced technology to China, in a reversal that spurred talk of a potential broader deal with Beijing. The Cyberspace Administration of China cited comments by U.S. lawmakers about the need to install tracking capabilities into advanced chips sold to other countries. The agency asked staff at the world’s most valuable company to explain potential risks and provide documents as needed, the CAC said without elaborating. Read More

AUD/USD gives up most of its post-NFP gains but remains modestly higher on the day, still on track for its biggest weekly loss since March. The US NFP report showed only 73K jobs added in July, well below the 110K expected. Australia’s Q2 Producer Price Index slowed to 3.4% YoY and 0.7% QoQ, indicating easing input cost pressures. The Australian Dollar (AUD) remains under pressure against the US Dollar (USD) on Friday, giving back most of its earlier gains despite broad weakness in the Greenback following a disappointing Nonfarm Payrolls (NFP) data. The AUD/USD initially surged nearly 70 pips after US jobs data surprised to the downside, but the momentum quickly faded as markets shifted focus to rising expectations of an interest rate cut by the Reserve Bank of Australia (RBA) at its upcoming meeting on August 12. The dovish outlook is keeping the Aussie pinned near multi-week lows. At the time of writing, the AUD/USD pair is edging lower, hovering around 0.6446 during the American trading hours, though still modestly up 0.30% on the day. The pair remains on track to record its biggest weekly decline since March. Meanwhile, the US Dollar Index (DXY), which tracks the Greenback against a basket of six major currencies, has pulled back from the two-month high of 100.26 marked earlier on Friday and is currently trading near 99.13, as expectations for a September interest rate cut rise following weaker US labor market data. The July NFP report showed the US economy added just 73,000 jobs, falling well short of the 110,000 expected, marking the weakest print of the year. To add to the disappointment, prior months were revised sharply lower, with May and June payrolls slashed by a combined 258,000 jobs. The Unemployment Rate edged up to 4.2%, in line with expectations, while wage growth remained steady at 0.3% MoM and 3.9% YoY. The data signaled a cooling labor market and prompted a swift repricing of interest rate expectations. According to the CME FedWatch Tool, markets are now assigning an 82% probability of a rate cut at the Federal Reserve’s (Fed) September policy meeting, up sharply from 37% before the report was released. US President Donald Trump questioned the credibility of the latest jobs report, claiming the figures are being produced by a “Biden appointee,” and said he has directed his team to fire the Commissioner of Labor Statistics, calling for more accurate data. Data released earlier on Friday by the Australian Bureau of Statistics showed that the Producer Price Index (PPI) rose by 3.4% YoY in the second quarter, down from 3.7% in Q1. On a quarterly basis, PPI increased by 0.7%, easing from the 0.9% rise recorded in the previous quarter. Consumer Price Index (CPI) data in the second quarter showed annual inflation slowing to 2.1%, while the Reserve Bank of Australia’s (RBA) preferred trimmed mean measure came in at 2.7% — comfortably within the RBA’s 2–3% target range. Commenting on the release, RBA Deputy Governor Andrew Hauser said the figures were “very much as we had expected,” suggesting the data is in line with the central bank’s outlook for continued disinflation. The softer inflation print strengthens the case for a possible rate cut at the RBA’s upcoming policy meeting on August 12. The softer inflation print, combined with easing producer price pressures, adds to expectations that the RBA may cut interest rates at its upcoming policy meeting on August 12. RBA FAQs The Reserve Bank of Australia (RBA) sets interest rates and manages monetary policy for Australia. Decisions are made by a board of governors at 11 meetings a year and ad hoc emergency meetings as required. The RBA’s primary mandate is to maintain price stability, which means an inflation rate of 2-3%, but also “..to contribute to the stability of the currency, full employment, and the economic prosperity and welfare of the Australian people.” Its main tool for achieving this is by raising or lowering interest rates. Relatively high interest rates will strengthen the Australian Dollar (AUD) and vice versa. Other RBA tools include quantitative easing and tightening. While inflation had always traditionally been thought of as a negative factor for currencies since it lowers the value of money in general, the opposite has actually been the case in modern times with the relaxation of cross-border capital controls. Moderately higher inflation now tends to lead central banks to put up their interest rates, which in turn has the effect of attracting more capital inflows from global investors seeking a lucrative place to keep their money. This increases demand for the local currency, which in the case of Australia is the Aussie Dollar. Macroeconomic data gauges the health of an economy and can have an impact on the value of its currency. Investors prefer to invest their capital in economies that are safe and growing rather than precarious and shrinking. Greater capital inflows increase the aggregate demand and value of the domestic currency. Classic indicators, such as GDP, Manufacturing and Services PMIs, employment, and consumer sentiment surveys can influence AUD. A strong economy may encourage the Reserve Bank of Australia to put up interest rates, also supporting AUD. Quantitative Easing (QE) is a tool used in extreme situations when lowering interest rates is not enough to restore the flow of credit in the economy. QE is the process by which the Reserve Bank of Australia (RBA) prints Australian Dollars (AUD) for the purpose of buying assets – usually government or corporate bonds – from financial institutions, thereby providing them with much-needed liquidity. QE usually results in a weaker AUD. Quantitative tightening (QT) is the reverse of QE. It is undertaken after QE when an economic recovery is underway and inflation starts rising. Whilst in QE the Reserve Bank of Australia (RBA) purchases government and corporate bonds from financial institutions to provide them with liquidity, in QT the RBA stops buying more assets, and stops reinvesting the principal maturing on the bonds it already holds. It would be positive (or

Amazon stock sinks as much as 8% on Friday following poor hiring data. July Nonfarm Payrolls report showcases large revision to summer hiring. Trump institutes new tariff rate, many of them higher than expected. Market is unhappy with AWS growth rate as Microsoft bears down on cloud leader. Amazon (AMZN) stock is reeling on Friday along with much of tech mega-cap tech sector after the July Nonfarm Payrolls (NFP) report showed a drastic decrease in hiring and the Trump administration’s higher tariff rates went into effect. All hell broke loose after the July NFP on Friday morning showed only 73K net new jobs in July, and prior months were revised down 260K fewer jobs than earlier reported. This news sent the US Dollar down 1.3% against the Euro and traders sold equities to crowd into US Treasuries, which saw sharp declines in yield. To say that risk-off sentiment has surged would be an understatement. While markets had long expected new tariff levels to go into effect on August 1, the Trump administration announced higher than expected tariff levels on several countries late Thursday. The 35% tariff on Canada, up from 25%, and 39% on Switzerland raised eyebrows, while India received a 25% tariff rate, similar to Mexico. Taken together with the employment report, investors are now returning to their April worries over the carnage unleashed by tariffs in the months ahead. The NASDAQ has traded down more than 2% at times on Friday morning, while the S&P 500 and Dow Jones Industrial Average (DJIA) have averaged between a 1% and 1.5% decline. Amazon stock news Amazon stock was already sinking somewhat in Thursday’s post-market despite delivering impressive second-quarter earnings results. Amazon delivered a 26% beat to the Wall Street adjusted earnings per share (EPS) consensus, and revenue came in $5.6 billion ahead of the average estimate. CEO Andy Jassy also raised guidance for the third quarter, but investors took issue with the AWS result, which was quite impressive but maybe not as impressive as Microsoft’s (MSFT) Azure operations. Sentiment that Azure is superseding AWS as the leading cloud provider only grew with this report. Amazon’s AWS saw revenue rise 17.5% YoY in Q2, while Amazon’s Intelligent Cloud segment reported revenue rising 26% over a similar period of time. What’s more, AWS revenue of $30.9 billion in the quarter was only $1 billion above Microsoft’s cloud operations. The economic news is also weighing down AMZN stock more than some of its competitors. The Trump administration’s new tariffs, some of which begin on August 1 while others start a week later, will surely force Amazon to raise prices or at least shift many of its overseas suppliers. This could lead to lower margins in the second half of 2025. And while Friday’s NFP report showed that the economy is still hiring new workers, the revised figures show the labour market is running on fumes. With layoff announcements growing, the possibility of a recession has grown somewhat more likely over the next 18 months. This has raised the chances that the Federal Reserve (Fed) will cut interest rates in September despite Fed Chair Jerome Powell saying earlier this week that he is still waiting to see how tariffs effect the economy. Amazon stock forecast AMZN stock was already sinking some 3% late Thursday before Friday’s NFP report ended bullish sentiment. After trading at a clear premium to the 20-day Simple Moving Average (SMA) since the first half of May, the Amazon stock price dove below it on Friday. This is a sign that the downtrend is likely to continue. Further support can be found at the 200-day SMA near $209 and the 100-day SMA near $204. In the worst case scenario, maybe if Microsoft overtakes AWS as the largest cloud provider, shares would still likely find solace in the $160s or $170s where AMZN found its footing in April. But Amazon is a favorite company, and bulls will simply hold off for the time being until the share price better reflects the present market’s uncertainty. This is more likely to mean that buying picks up in the vicinity around the $200 psychological level. AMZN daily stock chart Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page. If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet. FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted. The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice. Read More

For a number of hours leading to the softer than expected US July labour report, USD/JPY was back to trading above the 150.00 level for the first time since early April, Rabobank’s FX analyst Jane Foley reports. Fed dovish hopes resurface on weaker labor report “The outcome of this week’s Fed and BoJ policy meetings contributed to the move with the Fed being widely interpreted as less dovish than expected and the BoJ as less hawkish. The US jobs report has re-charged Fed easing hopes.” “We expect that USD/JPY can extend today’s move lower on a 3-month view, but that assumes that the market maintains the expectation that BoJ rates will be hiked around the turn of the year. To a large degree that depends on how the Japanese economy fares in a post-Trump tariff world.” “Despite its robust tone in July, the USD has today proven that it is susceptible to renewed weakness on speculation that the Fed will adopt a dovish policy bias going forward. It is Rabobank’s view that the Fed may cut rates four times next year in addition to a move next month.” Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page. If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet. FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted. The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice. Read More