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TOKYO (AP) — Nintendo, the Japanese video game maker behind the Super Mario and Pokemon franchises, reported an 18.6% surge in net profit for the first fiscal quarter Friday on the back of strong demand for its new Switch 2 console.

Kyoto-based Nintendo Co.’s April-June profit totaled 96.03 billion yen ($640 million), up from nearly 81 billion yen. Quarterly sales more than doubled to 572.36 billion yen ($3.8 billion).

Nintendo said it sold 3.5 million Switch 2 game consoles globally on the first four days after it hit store shelves June 5, a record pace for a Nintendo game machine. Its sales continue to be strong, it said.

The company said the new console’s higher price added to sales growth momentum. The new version sells for about $450 compared to $300 for the previous Switch when it first went on sale in 2017, .

Especially popular games included “Mario Kart World” and “Donkey Kong Bananza.” “Pokemon Friends,” which went on sale last month for the older Switch, can be also played on the new Switch.

The Switch works both as a handheld portable machine and as a home console.

Nintendo stuck to its forecast to sell 15 million Switch 2 machines through this fiscal year.

Nintendo left unchanged its profit forecast for the year through March 2026, at 300 billion yen ($2 billion) profit, up nearly 8% on year.

Nintendo stock, which has steadily climbed in the past year gaining more than 50%, edged down nearly 1% before earnings were announced.

There are some worries about the impact of President Donald Trump’s tariffs on Japanese exports, but that did not appear to affect Nintendo’s overall projections.

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Yuri Kageyama is on Threads: https://www.threads.com/@yurikageyama

NEW YORK (AP) — Stocks slumped in morning trading on Wall Street Friday and Treasury yields fell sharply after the government reported a sharp slowdown in hiring last month.

Markets are also reacting to the latest tariff news. President Donald Trump once again extended the date at which punishing import taxes will take effect for a long list of countries. The tariffs are now expected to take effect Aug. 7 for countries that have yet to make a deal with the U.S.

The S&P 500 fell 1.5% and is on track to close the week with a loss. The Dow Jones Industrial Average fell 599 points, or 1.4% as of 9:44 a.m. Eastern. The Nasdaq composite fell 2%.

Worries on Wall Street about a weakening economy were heavily reinforced by the latest report on job growth in the U.S. Employers added just 73,000 jobs in July. That is sharply lower than economists expected. The Labor Department also reported that revisions shaved a stunning 258,000 jobs off May and June payrolls.

The surprisingly weak hiring numbers led investors to step up their expectations for an interest rate cut in September.

The yield on the 10-year Treasury fell to 4.24% from 4.39% just before the hiring report was released. The yield on the two-year Treasury, which more closely tracks expectations for Federal Reserve actions, plunged to 3.75% from 3.94% just prior to the report’s release.

The market is betting that the Fed may finally have to act to cut interest rates in order help bolster a weak jobs market. It has held rates steady since December. A cut in rates would give the job market and overall economy a boost, but it could also risk fueling inflation, which is hovering stubbornly above the central bank’s 2% target.

Wall Street is now betting that the Fed will cut rates at its September meeting. Traders see a 80% chance of a quarter-point rate cut at that meeting, up from just under 38% a day earlier.

Apple rose 0.3% following an encouraging earnings report.

Stocks in Europe and Asia also fell.