Last Updated: 4:03 PM EST
Stock indices finished today’s trading session in the red. The Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) gained 2.79%, 1.78%, and 0.99%, respectively.
The impact of job cuts from the Department of Government Efficiency (DOGE) is starting to show up in labor market data. Indeed, layoffs in February surged to 172,017, which was the highest monthly total since July 2020 and a 245% increase from the previous month, according to Challenger, Gray & Christmas. The firm pointed to the government’s downsizing efforts, along with canceled contracts, trade tensions, and bankruptcies, as key drivers of the spike.
Additionally, continuing unemployment claims remain near a three-year high. This suggests that workers are taking longer to find new jobs. With hiring at its slowest pace in a decade, economists warn that government layoffs could push the unemployment rate higher in the coming months. However, the impact may not be immediate, and economists are still waiting to see how these job losses translate into official labor reports.
As a result, markets have already begun reacting as investors increasingly price in more interest rate cuts this year amid fears of slower economic growth and declining job opportunities. Nevertheless, initial jobless claims unexpectedly fell to 221,000 for the week ending March 1, which indicates that the labor market is still resilient for now.
Interestingly, though, Philadelphia Fed President Patrick Harker warned that while the labor market and economy remain strong, consumer confidence is starting to weaken, especially among lower-income households. He also mentioned that inflation could make a comeback and potentially complicate the Fed’s policy decisions.
First Published: 3:52 AM EST
U.S. stock futures were down early Thursday, following a strong rebound in major indices during the previous session. The rally was sparked by optimism about potential tariff concessions from the Trump administration. Futures on the Nasdaq 100 (NDX), the Dow Jones Industrial Average (DJIA), and the S&P 500 (SPX) were down 0.77%, 0.44%, and 0.55%, respectively, at 3:49 a.m. EST, March 6.
Specifically, the administration disclosed a one-month delay on auto tariffs for Mexico and Canada. This provided relief to major automakers like General Motors (GM), Ford (F), and Stellantis (STLA), which saw significant stock price gains.
In Wednesday’s regular trading, the Dow Jones, the S&P 500, and the Nasdaq Composite (NDAQ) rose 1.14%, 1.12%, and 1.46%, respectively. Despite these gains, all three major indexes remain down more than 1% for the week.
The market’s recent volatility stems from President Trump imposing tariffs on key trading partners, including Mexico, Canada, and China. These countries responded with retaliatory tariffs, raising fears of a trade war.
In after-hours trading, Marvell Technology (MRVL) and MongoDB (MDB) stocks were down 15% and 16%, respectively, on weak earnings reports. However, Zscaler (ZS) gained 5.4% on reporting robust fourth quarter results.
Looking ahead, investors are looking forward to several key reports due today, such as the Initial Jobless Claims for the week ended February 28, U.S. productivity for the fourth quarter, and January’s Wholesale inventories data.
On the earnings front, several companies, including Broadcom (AVGO), Costco (COST), Bigbear.ai (BBAI), Macy’s (M), Kroger (KR), and Hewlett Packard Enterprise (HPE), are scheduled to report quarterly numbers today.
Meanwhile, the U.S. 10-year treasury yield was up, floating near 4.319%. Simultaneously, WTI crude oil futures are trending higher, hovering near $66.53 per barrel as of the last check.
Elsewhere, European indices opened higher today as traders looked ahead to a slew of earnings reports and the European Central Bank’s latest monetary policy decision.
Asia-Pacific Markets Ended Higher on Thursday
Asia-Pacific indices were in the green today after Trump postponed tariffs on certain automakers, raising hopes for easing trade tensions.
Notably, Hong Kong’s Hang Seng Index was up 3.29%. Further, Japan’s Nikkei and Topix indices closed higher by 0.77% and 1.22%, respectively. Also, China’s Shenzhen Component and Shanghai Composite indices were up 1.77% and 1.17%, respectively.
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