Bad news .. Stay bad: US work data confuse markets and double the pressure on federal

‘Wall Street’ has for months ignored the impact of the trade war launched by US President Donald Trump, as well as the Federal Reserve of his hard line position on interest rates, in light of the confidence that the US economy will remain strong enough to support the markets. But this confidence started cracking this week. The postal report shakes the markets of poor posts, as well as a new package of customs announced by Trump, who shook the confidence of the investors, the pressure on federal reserve chairman Jerome Powell doubles to lower interest rates and reveal increased tensions in the White House. The job report released on Friday, which shows a sharp slowdown in the job market, finished three months of relative calm in the market. Traders rushed to use after hedging tools, and the return on the Treasury bonds has fallen to 3.68%for two years, in the largest daily decline since December 2023. At the same time, the markets increased to lower the interest rate next month, and the dollar fell, while the “Standard & Poor’s 500”. Clearbridge Investments said: “Today’s data is the clearest example of the saying: Bad news is bad news. With the decline in the rate of job creation and the approaching effect of customs duties, there is a strong possibility of issuing a negative job report in the coming months, which can increase the fear of stagnation.” Trump will reject the disappointed recruitment results that Trump led to directing orders to reject the Commissioner of the Labor Statistics Office, Erika Macinarv, and accused them without being data. Read the details: Trump recommends the dismissal of the head of the office of the work statistics to poor recruitment data. Neil Dutta, head of the economy department at Renessance Macro Reserve, said “general statistics in the United States represent the gold standard. If you don’t like it, you don’t like the market confidence.” Celebrity voltage is an increase in geopolitical tension added to a state of dislike for markets. Trump has announced that he has ordered the deployment of core divers in the ‘appropriate areas’, in response to ‘very provocative’ statements from former Russian President Dmitri Medvedev. This week’s developments were a sharp shift compared to Julie, when the dollar scored gains, safe ports dropped, and US stocks fared better than their global counterparts, supported by strong profits and an economy that is still coherent. But at the end of the week, this novel became fragile. The new customs duties that increased the average US fees on international imports amounted to 15%, which is the highest level in the 1930s. At a time when the data showed that the growth of jobs has reached an average of 35,000 jobs over the past three months, which is the worst since the pandemic. Part of this slowdown is due to Trump’s efforts to reduce government spending. This slowdown has strengthened the market expectations to lower interest rates in September as they rose to 91%, compared to only 40% at the beginning of the week. “Many people are watching the opportunity to go out. Poor job numbers increase the scenario of reducing interest in September, but there is concern that the Federal Reserve may wait a long time.” The dollar has fallen by 1%, in the worst daily decline since April. Economically sensitive businesses have led to the decline in the S&P 500 index, amid anxiety over growth. As for the “Russell 2000” index for small businesses, it recorded a fall for the fifth consecutive day to close its worst week in more than two months. Also read: Trump calls on the Federal Council to “take over the administration” if the interest is not reduced and recent data has also shown that the manufacturing sector in the United States has shrunk in the largest rate in nine months, with the emphasis on the dilemma that Jerome Powell and the rest of the members of the coming Trump administration that does not move the central bank fast. Many economists believe that the punishment imposed by Trump, and his attempt to unilaterally rewrite the rules of international trade, has undermined the economy that is supposed to take advantage of the lowering of interest rates by increasing production costs on US businesses and placing a real “tax” on consumers. At the same time, these fees can increase inflation to rise, which prevents the Federal Reserve from reducing the poor labor market. Investors’ confidence at stake is the state of anticipation and uncertainty that has hit investor confidence in the direction of the US economy, and thus in the course of asset prices. The markets ranged strongly with the re -evaluation of traders of economic reality, especially after adding nearly $ 15 trillion since April to the market value of shares. The CBOE Volatiicliex index jumped over the level of 20 for the first time since the fall -associated in April. Indicators of volatility in the markets with high and investment effect had a similar increase. “It seems that investors have become too reassuring while waiting for the effects of economic slowdown as a result of fees and high interest rates. Now the impact of the economic slowdown must begin to appear. The poor labor market conditions must be increased the alarm of the Federal Reserve. With the history of the bank in the delayed move. Not safe against economic and geopolitical shocks. from the pessimists to US stocks, after the execution of the S&P 500 index exceeded the rest of the world markets for three consecutive months. Investment officer of the US Sencri Investment Management. The general volatility that President Trump himself creates on the economic scene indicates that he still has to be careful. “This fluctuation between the focus on the principle of” America First “in trade and doubts about the strength of the US economy creates a suffering for money managers who find it difficult to keep up with the change of market narratives, for example. Macro/CTA “Index decreased by 3% This year, on the way to register the worst annual performance synce synce 2018. Jeffrey Palma, Head of Multiple Assets Solutions at Cohen & Steers: Said: Although Growth was coherent, and investors again. Mix of weak recruitment data and the ambiguity related with festival, it is a great challenge, “He added,” This scene reminds us that there are great risks before us.