Did the Jobs Report Alter Rate Cut Expectations?
The U.S. economy added 151,000 jobs in February, falling short of the 170,000 estimate from economists polled by Dow Jones. The unemployment rate inched up to 4.1% from 4%, reinforcing fears of a cooling labor market.
Following the data release, Treasury yields fell as traders adjusted their expectations for Federal Reserve policy. The 10-year Treasury yield slid 7 basis points to 4.22%, while the 2-year yield declined 6 basis points to 3.90%. Glen Smith, chief investment officer at GDS Wealth Management, suggested the report could influence the Fed’s rate-cut timeline, raising the possibility of a move as soon as June.
How Are Tariffs Driving Market Volatility?
Markets remained on edge over shifting trade policies. The White House announced a temporary exemption from 25% tariffs on certain imports from Canada and Mexico under the USMCA, set to expire on April 2. While the relief provided some clarity, investors remained concerned about the broader implications of trade policy unpredictability.
“The stock market is moving in lockstep with tariff headlines,” Smith noted. “Volatility is likely to remain high as investors grapple with uncertainty.”
What’s Next for Stocks?
Equities struggled throughout the week, with the Dow falling over 400 points on Thursday and the Nasdaq Composite entering correction territory, down more than 10% from its all-time high. The S&P 500 has lost 3.6% this week, while the Dow is down 2.9%. The Nasdaq is the worst performer, sliding 4.1%.
Despite the broader selloff, Broadcom surged more than 9% in premarket trading on strong earnings, providing a boost to AI-related stocks. Nvidia also saw premarket gains.