On Friday, U.S. stocks took a significant tumble, setting the stage for what seemed to be the roughest week in the market since 2022. The downturn was fueled by a jobs report that fell short of expectations, adding to ongoing worries about the impact of Donald Trump’s tariffs on the U.S. economy.
The latest figures from the Bureau of Labor Statistics revealed that in February, the U.S. economy added 151,000 jobs. This was below the 160,000 jobs that economists, as surveyed by Reuters, had been anticipating. To compound matters, January’s job creation numbers were revised downward by 18,000, bringing the total to 125,000 for that month.
Last month’s unemployment rate edged up slightly to 4.1 percent, contrary to predictions that it would remain steady at 4 percent.
As news of these developments spread, Wall Street reacted swiftly. The S&P 500 saw a decline of 1.1 percent on Friday, capping off a week where it sagged by 4.6 percent overall. This represents its most significant weekly drop since September 2022, according to data from FactSet. The Nasdaq Composite, known for its tech stocks, didn’t fare much better, dropping by 1.5 percent.
This disappointing jobs report was the latest blow in a week marked by volatility, largely stirred by Trump’s decision to impose 25 percent tariffs on Canada and Mexico, though there was a partial reprieve later on. Recent indicators have highlighted how the uncertainty surrounding these tariffs is negatively affecting manufacturing and consumer spending, both crucial to U.S. economic growth.
In a related development, the federal government workforce contracted by 10,000 jobs in February. This reduction might be an early sign of Trump’s efforts to trim the federal workforce, partially in line with plans under Elon Musk’s so-called Department of Government Efficiency. This marks the most substantial decrease in federal employment since June 2022.
