Weak Jobs Report and Trump’s New Tariffs Shake Global Markets

Financial markets tumbled Friday following a weaker-than-expected U.S. jobs report and President Trump’s renewed and more aggressive global tariff strategy. Investors quickly shifted expectations, betting the Federal Reserve may soon intervene with interest rate cuts to stabilize the economy.

Summary of Key Developments

📊 Markets React Sharply to Economic and Political Pressure

U.S. stock futures plunged across the board:

• Nasdaq 100 futures fell by 1.26%, leading declines in the tech sector.
• S&P 500 futures dropped by 1.07%.
• Dow Jones futures lost 0.95%, reflecting broad-based concern.

Investors fled to bonds, pushing down 10-year Treasury yields by 11 basis points to 4.266%. The WSJ Dollar Index dropped nearly 1%, erasing earlier gains as traders bet on looser monetary policy.

Trump’s Tariff Surprise Hits Global Trade Hopes

President Trump unveiled a tougher tariff structure that hit several key trading partners harder than anticipated:

Tariff rates now vary based on a country’s trade balance with the U.S.:

• Surplus countries: 15% duty
• Deficit countries: 10% duty

Companies are growing increasingly vocal, warning that tariff instability is weighing on hiring, investment, and earnings guidance.

Read More: Trump Demands Jerome Powell’s Immediate Resignation!

🌎 Global Markets Slide in Sync

European equities also saw red across the board:

• Italy, France, and Germany fell over 1.5%
• Pharmaceutical stocks were hit hard after Trump pressured drugmakers to lower U.S. prices
• Swiss stock market remained closed for a public holiday

In Asia, the tone was even more bearish:

• South Korea’s KOSPI plunged 3.9% after Seoul proposed tax hikes on both corporations and investors
• Other Asian benchmarks fell on global demand concerns and trade policy uncertainty

💼 Corporate Earnings Under Pressure

The corporate earnings season continued Friday with mixed results:

• Amazon shares slid in premarket trading after cloud segment growth disappointed
• Reports due from Chevron, ExxonMobil, and Colgate-Palmolive will offer further clues on how multinationals are navigating inflation and tariffs

By the end of the day, about one-third of the S&P 500 will have reported quarterly results. Many companies are citing tariff risk as a key obstacle to profitability and planning.

Investor Outlook: Fed in Focus

With growth slowing and trade tensions escalating, all eyes turn to the Federal Reserve. Market watchers believe the Fed is now more likely to cut interest rates in upcoming meetings, especially if inflation cools and employment remains soft.

“The dual shock of a weak jobs report and rising global tariffs could fast-track Fed easing,” said one senior strategist at Goldman Sachs.

Key Takeaways

• Jobs report missed expectations with only 106K new positions over three months
• Stocks slid globally, with tech and pharma hit hardest
• Trump’s tariffs now affect Canada, Switzerland, Taiwan, and others more aggressively
• Fed rate cuts are now more likely, with bond yields and the dollar falling
• Corporate earnings show rising concern about trade policy instability

What’s Next?

As the U.S. navigates slower job growth and heightened trade battles, the Federal Reserve’s next move becomes even more critical. Will a rate cut calm markets or signal deeper trouble ahead?

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