News

Fed seen waiting until June to start rate cuts, after big job gains last month

Still, contracts continue to price a full percentage point of Fed rate cuts by year end, and some chance of a fifth cut, as investors worry an escalating trade war will sharply slow economic growth. Bets in short-term U.S. interest-rate futures on more aggressive Fed policy easing had surged overnight, after China announced its own tariffs to counter new U.S. import levies. U.S. employers added 228,000 jobs last month, the Labor Department's monthly jobs report showed, far more than even the most optimistic economist polled by Reuters had anticipated.

US labor market shows resilience before trade tensions escalation

WASHINGTON (Reuters) -The U.S. economy added far more jobs than expected in March, but President Donald Trump's sweeping import tariffs could test the labor market's resilience in the months ahead amid sagging business confidence and a stock market selloff. The Labor Department's closely watched employment report on Friday suggested steady momentum in the economy before the Trump administration's reciprocal duties announced this week, which unleashed threats of retaliation and rattled global financial markets. "This is a drop of good news in a sea of uncertainty, a footnote given the barrage of activities this week," said Olu Sonola, head of U.S. economic research at Fitch Ratings.

Tech, bank stocks tumble as China's retaliation stokes fears of widening trade war

China slapped additional duties of 34% on U.S. goods, set to go into effect April 10. U.S. President Donald Trump on Wednesday announced 34% duties on imports from China along with a 10% baseline tariff on most goods flowing into the U.S., triggering a massive market meltdown on Thursday. Shares of Tesla and Apple - among companies with a large exposure to China - were down 8% and 4%, respectively.