Not even a strong update on the labor market could halt the stock market’s tariff-fueled selloff.
The Dow Jones Industrial Average sank another 1,120 points, or 2.8%, after falling more than 1,600 points on Thursday. The blue-chip index was on track to close in correction territory.
The Nasdaq Composite dropped 3.4% to 15,972, and was on track to enter its first bear market since 2022 and its 20th on record.
The S&P 500 fell 3% to 5228. It would need to close below 4915.32 to enter a bear market.
The Labor Department said the U.S. economy added 228,000 jobs in March, which was well ahead of expectations of 130,000. But earlier selling as the world reacted to President Donald Trump’s tariff plans did not abate. Stock futures fell sharply when China announced 34% retaliatory tariffs on the U.S.
“On a day when good news doesn’t matter, we saw an encouraging improvement in the job market,” writes Chris Zaccarelli, chief investment officer at Northlight Asset Management. “Unfortunately, the market is no longer focused on the jobs market and focused squarely on tariffs and trade wars as the US plays chicken with the rest of the world, potentially beginning a downward spiral into a worldwide recession.”
Many on Wall Street are worried that declines in sentiment and uncertainty surrounding the tariffs will lead to a deterioration in the labor market in the months to come. Peter Boockvar, an independent economist and market strategist, called it “the last jobs report before the global trade earthquake of April 2nd.”
“Yields rose a touch and now everyone is discussing/debating how the Fed will respond to this,” writes Boockvar. “Right now the fed funds futures are pricing in 115 [basis points] of rate cuts by year end which implies 100% chance of four and 60% chance of a 5th. Can they save the day?”
Federal Reserve Chair Jerome Powell is scheduled to speak at the Society for Advancing Business Editing and Writing’s conference at 11:25 a.m. ET. The Fed chair’s reaction to the White House’s steep tariff plans will be closely watched, though Powell has tended to avoid political topics.
