Tariffs Push Stocks Lower, Dollar Climbs on Jobs Data

Tariffs Push Stocks Lower, Dollar Climbs on Jobs Data

The stock market declined due to renewed geopolitical concerns, reversing several days of gains and ending the week slightly down. Despite ongoing updates on corporate earnings, economic indicators, and global developments, neither buyers nor sellers are driving a clear trend in equities or cryptocurrencies. Investors are waiting for a major catalyst to determine the market’s next move.
President Donald Trump is set to announce new reciprocal tariffs next week. Unlike flat-rate tariffs, these are designed to match the tariffs that other nations impose on U.S. imports. Adopting a tit-for-tat approach, Trump stated, “I think that’s the only way to do it. They charge us. We charge them.”

This announcement led to a broad-based sell-off in stocks as investors scrambled to assess which countries and companies would be most affected. Meanwhile, the U.S. Dollar Index surged alongside rising interest rates, breaking their recent losing streak.
The general expectation is that these policies will make it harder to keep interest rates low—a goal Trump has expressed for his administration. A stronger U.S. dollar, combined with factors like a resilient job market, is likely to continue driving up borrowing costs and potentially inflation.

The greenback also gained strength after U.S. economic data revealed weaker-than-expected job growth in January. Nonfarm payrolls increased by 143,000, falling short of the 169,000 estimate and down from December’s 307,000. However, average hourly wages grew faster than inflation (+0.5% MoM and 4.1% YoY), and the unemployment rate declined to 4% as labor force participation edged up by 0.1%.

Trump’s trade policies are having a significant impact on the broader economy, financial markets, and individual stocks.

Here are today's closing prices: