Stocks Slide as Tariff Angst Adds to Price Worries – US Market Wrap

Wall Street traders concerned about the potential impact of US tariffs on inflation received little relief from economic data that only heightened concerns about price pressures, fuelling speculation that the Federal Reserve will not cut interest rates soon.

Stocks have erased this week’s gains, with the S&P 500 falling nearly 1%. President Donald Trump has stated that he will announce reciprocal tariffs next week, escalating his trade war. United States Steel fell after he said Nippon Steel is considering investing in the company rather than buying it outright. Equities fell after data showed a decline in consumer sentiment amid concerns about inflation. Mixed job figures showed a moderating – but healthy – labor market and an increase in wages.

The most recent economic data help to explain why policymakers have signaled that they are not in a hurry to lower borrowing costs following three rate cuts last year. While traders remain confident that the next move will be a reduction, they are only fully pricing one in September.

The S&P 500 index fell 0.9%. The Nasdaq 100 declined 1.3%. The Dow Jones Industrial Average declined 1%. A gauge of the “Magnificent Seven” megacaps fell 1.9%. The Russell 2000 fell 1.2%. Amazon fell about 4%.
The yield on 10-year Treasuries rose five basis points to 4.49%. The Dollar gained 0.2%.

Nonfarm payrolls rose by 143,000 last month, following upward revisions to the previous two months. Other annual revisions were not as severe as previously thought; job gains averaged 166,000 per month last year, down from the initially reported 186,000 pace.

The unemployment rate was 4.0%; the survey used to calculate the figure included separate revisions to reflect a new population estimate at the beginning of the year, rendering the figure incomparable to previous months. Meanwhile, hourly wages rose 0.5%.