Wall Street Swings post-NFP as Trade Policies and Economic Concerns Roil Investors

The S&P 500 experienced a volatile session on Friday, capping a challenging week with its steepest decline in several months. Investors wrestled with a mix of trade policy developments and lackluster economic data, leaving markets on edge.

The Dow Jones Industrial Average, the S&P 500, and the Nasdaq Composite all saw recovery gains by the end of Friday, with each rising by roughly 0.3% or more. However, the trading day reflected sharp swings, as the Dow plummeted over 400 points at one point before rebounding significantly. Similarly, both the S&P 500 and Nasdaq Composite experienced notable lows before rallying later in the day.

A weaker-than-expected February jobs report contributed to investor uncertainty. Nonfarm payrolls increased by just 151,000, falling short of economists’ forecast of 170,000, while the unemployment rate edged up to 4.1%. The subdued jobs data raised fresh concerns over economic softening, while Treasury yields declined in response.

Market anxieties were compounded by evolving trade policies. New tariff announcements sparked concerns about future U.S. growth and inflation. Temporary exemptions for some goods from specific trade agreements helped ease tensions slightly, but the lack of clarity on long-term trade strategies kept investors wary. The broader uncertainty prompted significant market selloffs earlier in the week.

As the dust settled, the three major indices were on track for their sharpest weekly declines since September. The Dow and S&P 500 had fallen more than 2% and 3%, respectively, while the Nasdaq Composite tumbled by 4%, entering correction territory.

Treasury Secretary Scott Bessent weighed in, acknowledging that the economy might be undergoing a period of adjustment but downplayed the long-term impact of tariffs. Describing them as a “one-time price adjustment,” he dismissed fears of lasting inflation.

In summary, the combination of weak economic data and shifting trade policies has led to a tumultuous week for investors, leaving the markets grappling with persistent volatility.