US added a surprising 228,000 jobs but will it cheer Wall Street Stock Market amid Trump’s trade wars?

US economy added far more jobs than expected in March. Nonfarm payrolls were increased by 228,000 jobs last month after a downwardly revised 117,000 rise in February, the Labor Department said in its closely watched employment report on Friday. The report came amid a global stock rout and rally in safe-haven government bonds after U.S. President Donald Trump's sweeping tariff plans sowed fears about a global recession, with the sell-off deepening after China said it would impose additional levies of 34 per cent on American goods.

Jobs Data Impact on US Stock Market

S&P 500 E-minis pared a loss to -2.5 per cent, still pointing to another big drop at the open on Wall Street. The yield on benchmark U.S. 10-year notes rose to 3.9214 per cent, the two-year note yield rose to 3.545 per cent. The dollar index turned 0.19 per cent higher and the euro turned 0.26 per cent lower, Reuters reported.


The stock market isn't paying a lot of attention to the jobs report. It's in a panic mode, selling at any price. But the jobs report was extremely strong for what that's worth. The non-farm private payrolls number was well above expectations. This seemed to make up for the downward revision to the February numbers and more, according to Tim Ghriskey, Senior Portfolio Strategist, Ingalls & Snyder, New York City.

Unemployment Rate Rises

Meanwhile, the unemployment rate rose to 4.2 per cent from 4.1 per cent in February. The labor market is being underpinned by low layoffs, generating solid wage gains that are helping to sustain the economic expansion.

But businesses have been hesitant to hire because of an uncertain trade policy. That caution could give way to job cuts after Trump unveiled on Wednesday a 10 per cent minimum tariff on most goods imported into the U.S., unleashing threats of retaliation and rattling global financial markets.

Economists estimated that Trump's sweeping import duties had boosted the nation's effective tariff rate to the highest level in more than a century. They warned of snarled supply chains and high prices, culminating in layoffs as spending by both households and consumers retrenches.

FAQs

Q1. Who is USA President?
A1. USA President is Donald Trump.

Q2. What is current unemployment rate?
A2. The unemployment rate rose to 4.2 per cent from 4.1 per cent in February.