Powell’s message? The U.S. economy is holding up just fine. “The labor market is solid, and inflation is inching closer to our 2% target,” he noted in a Friday speech. Investors seemed to breathe a sigh of relief—sending stocks higher.
- S&P 500 rose 0.6% to 5,770.20
- Nasdaq Composite climbed 0.7%
- Dow Jones Industrial Average gained 0.5%
However, that didn’t erase the damage from the week:
- S&P 500 shed 3.1%—its worst drop since September
- Nasdaq tumbled 3.5%
- Dow slipped 2.4%
What’s Dragging the Market Down?
Several forces are keeping investors on edge.
🔹 Tariff Turmoil: The Trump administration floated new tariffs on Canadian lumber and dairy products, adding more uncertainty to the global trade picture. Traders are still trying to make sense of the shifting policies.
🔹 Jobs Report Jitters: February’s nonfarm payrolls came in at 151,000 jobs, missing expectations of 160,000. Wage growth cooled slightly, rising 0.3%, which is good news for inflation but raised questions about economic strength.
🔹 Rate Cut Timing: The market is still pricing in a June rate cut, but expectations for a May cut have faded.
Bond Yields Tick Higher
Treasury yields bounced after the jobs report:
- 10-year yield rose 4 basis points to 4.32%
- 2-year yield gained 3 basis points to 4%
Winners and Losers
📈 Big Winner: Broadcom (AVGO) +8.7% after crushing earnings expectations.
📉 Big Loser: HP Enterprise (HPE) -11.9%, thanks to a weak outlook tied to tariffs and stiff competition.
What’s Next?
Investors will be watching to see if the S&P 500 and Nasdaq can hold their 200-day moving averages, a key technical level that could determine whether the market finds support—or continues its slide.
“Equities remain under pressure,” says Alex King of Cestrian Capital Research. “If the 200-day average holds, we could see a rebound. If not, more downside ahead.”
With volatility on the rise, buckle up—it could be a bumpy ride.
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