Volatility Reigns as US Stocks Tumble Amid Jobs Report, Tariff Uncertainty

As of March 7, 2025, the US stock market is closing out a tumultuous week marked by significant volatility. The major indices have had a mixed day but are generally down for the week. The S&P 500 was down by 0.4 percent in midday trading, reversing an earlier gain of 0.6 percent, and is on track for its worst week since September, dropping by 184.30 points, or 3.1 percent, for the week. The Dow Jones Industrial Average was up by 186 points, or 0.4 percent, at one point but ended the day down by 1,039.19 points, or 2.4 percent, for the week. The Nasdaq composite rose by 0.4 percent at one point but is down by 651.06 points, or 3.5 percent, for the week.Key factors driving today's market direction include the release of the February jobs report, which showed employers added 151,000 more jobs than they cut, slightly below economists' expectations but still an acceleration from January's hiring. This data has kept the market cautious, especially with the unemployment rate remaining at 4 percent and average hourly earnings showing strong growth, which could intensify inflation concerns.Notable sector performance saw technology stocks under pressure, with Amazon's shares dropping despite strong earnings due to disappointing revenue growth projections. On the other hand, Pinterest shares surged by 20 percent after beating earnings expectations and receiving an upgrade.The most actively traded stocks included Amazon, Pinterest, JPMorgan, Expedia, and Deckers Outdoor, with Pinterest being one of the biggest percentage gainers. Amazon and other tech giants were among the biggest losers.Significant market-moving news events include President Trump's ongoing tariff announcements and reversals, which have created confusion and uncertainty in the market. The lack of a coherent strategy on tariffs has negatively impacted risk appetite and economic momentum.Looking forward, pre-market futures indicate continued volatility. Key events to watch for tomorrow include further economic data releases and any new developments on the tariff front. Important upcoming earnings releases will also be closely monitored for signs of economic health. Potential market catalysts include the Federal Reserve's future interest rate decisions, which could be influenced by the latest jobs report and inflation data. The market is currently pricing in a rate cut by the end of the year, with the first move expected in June.This content was created in partnership and with the help of Artificial Intelligence AI