Analysis-American jobs data calm the fears of markets but dominate policy uncertainty

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Author Saqib Iqbal Ahmed and Laura Matthews

New York (Reuters) – A firm report on American business pointed out some whirlwindy concerns about rapid growth slowdown, but with an increase in uncertainty of politics and heading of tariffs that hold the prospect of Murky’s risk property, Wall Street See Little.

US job growth in February was only shy estimates, and the unemployment rate increased up to 4.1%, but investors addressed for more outcomes after a recent series of worrying data.

After punishing sales in stock this week, the markets remained consumed by uncertainty due to trade policy and deep decrease in the consumption of the Federal Government, which could destroy the resistance to the labor market in the coming months.

“We have a relatively expensive market. Mix this with uncertainty and concern and the slightest resistance path down,” said Jack Abblin, Chief Investment Director at Cresset Capital in Chicago.

“This is just a risk mentality and it will need a lot of information to convince people otherwise,” Abblin said.

Neparama payments of the list increased by 151,000 jobs last month after they increased in January to a decline in the revised 125,000, the Ministry of Labor said on Friday. The economists surveyed by Reuters forecast salaries that progressed in 160,000 jobs.

The employment report followed the data that showed that American economic growth slowed down in the fourth quarter, while retailing in the United States had fallen at most in almost two years in January.

“It’s not really a softening of economic growth that a lot of investors expected on the basis of some recent information,” said Gennadiy Goldberg, head of the American Rates Strategy at TD Securities in New York.

Investors have clashed with dramatic changes in politics around the world, including President Donald Trump back on the implementation of fresh tariffs to Mexico, Canada and China.

The risks for Mexican, Canadian and American economy are collected in the midst of the chaotic implementation of American tariffs that have created deep insecurity for companies and decisions, according to the survey of the Reuters economist who have been taken this week.

“You will not get a job, you will not make capital expenditure plans until you see what things fall out,” said Chris Grisanti, the main market strategist at Mai Capital Management. “I suppose we will start to see that it will pass in future monthly numbers.”

The data on Friday did not turn a little of the tide of the teddy bear feelings that caught Wall Street. Stock storage on Wall Street has been abruptly sold out this week, and Nasdaq Composite on Thursday confirmed that it has been in correction since December and S&P 500 on the pace for its highest percentage of percentage in six months.

The shares swung wildly on Friday, and the S&P 500 changed a bit in the afternoon store. The main indexes reduce losses after the commentary on the federal reserves of Jerome Powell, who said in the economic forum that the economy “still be in a good place.”

The United States Central Bank will not rush to reduce interest rates while waiting for greater clarity on how Trump’s administration policy affects the economy, Powell said.

“Powell gives calmness to the market that is moving very wrong,” said Lindsey Bell, a major market strategist in Clearnomics.

For some investors, recent signs of weakening growth and the possibilities of further market turmoil due to tariffs were a sign of removing a certain risk from the table, and the data on Friday did not rebel that belief a little.

Carson Group remains overweight, but now we are favored with more defense names, not more volatile, more risky shares, said Son Varghese, a global macro strategist.

Since international shares struggling better than US markets, investors also watched outside the USA

“I advocate taking profit on American major technological positions, which were big winners, and diverting some of the backward areas on the market like International, and here at Mid-Caps and Mali home,” said Talley Leger, the main market strategist at The Wealth Consulting Group.

Investors also increase protection on the market option with demand for defense options contracts. The CBOE volatility index, a demand for protection from withdrawing the stock market, increased on Friday at a peak 3 weeks of 26.56.

“Investors are very concerned about the risk disadvantages for their portfolio,” said Torsten Slok, the chief economist of Apollo Global Management, in a note.

Wall Street focus will also turn on how long the FED remains led by reducing interest rates.

The Fed held its reference interest rate in the range of 4.25% -4.50% at a politics meeting last month, and is expected to do so again at its gathering from March 18 to 19. The traders of the short -term future of interest rates after the report is found to be found that the FED will issue about three decreases in 2025, according to LSEG DATA.

With job data, “Although the worst fears are not fulfilled, the report confirms that the labor market is cooled and that it may require the help of the Fed in the coming months,” the main global strategy in the main asset said in the comments E -after -a -long global strategy.

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