Amid concerns about high inflation and tariffs, US stocks slipped on Friday, while a closely seen report gave a mixed picture of the US job market.
The S&P 500 was about 1%below, and the Dow Jones fell more than the industrial average of 400 points or about 1%. A sharp decline for Amazon after its latest profit report helped draw Nasdaq composite down by about 1.4%.
After a discouraged report on Friday morning, the treasury’s yield climbed into the market, suggesting the feeling of what is unexpectedly sour among American consumers. The preliminary report of the University of Michigan said that USUMERS was expecting inflation in the year since 2023 was a 4.3%hit for the most discovery.
This is a full percentage point that they were expecting a month ago, and this is the second direct sunlight of an unusual amount. Economists pointed to the possibility of Taf on a wide imported products in the US, proposed by President Donald Trump, and that can eventually increase prices for American consumers.
Trump said on Friday that he was likely to announce on Monday or Tuesday, where a country pays so much or charges so much from us, and we do the same. ”
Report of jobs
Consumer sensory data followed a mixed report on the US job market. It was shown that the hiring last month was less than half of the December rate, but this involves encouraging the nuggets for the workers: the unemployment rate declined, and the workers saw a large profit in the average wills than the economists.
All data taken simultaneously can keep the Federal Reserve on hold when talking about interest rates. Fede started cutting its main interest rate to reduce the pressure on the economy and job market, but it warned at the end of the year that it could cut in short time in 2025, as it was expected, inflation Given concerns about.
Interest rates are one of the things that the wall street cares about, as low rates may lead to high prices for shares and other investments. The negative side is that they can give more fuel to inflation.
For Senior Global Market Strategist Scott Wrain at Wales forgo Investment Institute, the Jobs Report did nothing to change its forecast for the Fed, which is found only once in 2025. According to the CME group data, approximately 45% of the chance will see that the fed will cut at least twice. Of course, some traders are very betting on the possibility of zero cut.
Wrain stated that financial markets may remain unstable in the near period, not only due to uncertainty about interest rates but also Trump’s tariff and other unknown around the world.
Concern about a potentially punished global trade war that shaken the markets earlier in the week, has reduced a slightly backward trump that Trump gave a 30-day resurrection for tariffs on Mexico and Canada. Economists at the Bank of America wrote in the Bofa Global Research Report, “Europe may be the next, and even if the end result is gentle, uncertainty may weigh global investment.”
One fear among economists is that when American families expect inflation to be high in future, they can start buying things in advance and create other tricks that set a self-suitable cycle that spoils inflation Can do
