US Stock Market Reacts to Strong Employment Data, Trump's Tariffs, and Inflation Concerns; Indexes Remain Near All-Time Highs

The US stock market experienced volatility following a strong employment report and the announcement of new tariffs by former President Trump. According to a recent report, the unemployment rate fell to 4.0%, indicating a tightening labor market, while wage gains exceeded expectations. However, average hours worked per week decreased, potentially due to weather-related factors. One-year inflationary expectations rose by one percentage point, possibly influenced by fears of Trump's proposed tariffs. Despite the positive employment data, consumer confidence, as measured by the University of Michigan, declined. The 10-year Treasury yield jumped but remained below 4.5%, supporting the equity market. While stocks fell on Friday, major indexes are still within a couple of percentage points of their all-time highs. Trump's announcement of 25% tariffs on steel and aluminum initially had a limited impact on stocks, with domestic steel producers seeing gains. Investors are now focusing on upcoming PPI and CPI reports, although Trump's tariffs are expected to be the primary driver of stock movements until the next Federal Reserve meeting. (Source: Unspecified, Date: Current Date)