AP PHOTOS: US stocks sink after a weak report on the economy
U.S. stocks are sinking following a discouraging report suggesting the U.S. economy may have shrunk at the start of the year, before most of U.S. President Donald Trump's announced tariffs could take effect.
This is a photo gallery curated by AP photo editors.
____
Follow AP visual journalism:
AP Images blog: http://apimagesblog.com
Instagram: https://www.instagram.com/apnews
AP Images on X: http://twitter.com/AP_Images
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
San Francisco Chronicle
11 minutes ago
- San Francisco Chronicle
Points of Light, founded by the Bush family, aims to double American volunteerism by 2035
NEW ORLEANS (AP) — The Bush family's nonprofit Points of Light will lead an effort to double the number of people who volunteer with U.S. charitable organizations from 75 million annually to 150 million in 10 years. The ambitious goal, announced in New Orleans at the foundation's annual conference, which concluded Friday, would represent a major change in the way Americans spend their time and interact with nonprofits. It aspires to mobilize people to volunteer with nonprofits in the U.S. at a scale that only federal programs like AmeriCorps have in the past. It also coincides with deep federal funding cuts that threaten the financial stability of many nonprofits and with an effort to gut AmeriCorps programs, which sent 200,000 volunteers all over the country. A judge on Wednesday paused those cuts in some states, which had sued the Trump administration. Jennifer Sirangelo, president and CEO of Points of Light, said that while the campaign has been in development well before the federal cuts, the nonprofit's board members recently met and decided to move forward. 'What our board said was, 'We have to do it now. We have to put the stake in the ground now. It's more important than it was before the disruption of AmeriCorps,'' she said in an interview with The Associated Press. She said the nonprofit aims to raise and spend $100 million over the next three years to support the goal. Points of Light, which is based in Atlanta, was founded by President George H.W. Bush to champion his vision of volunteerism. It has carried on his tradition of giving out a daily award to a volunteer around the country, built a global network of volunteer organizations and cultivated corporate volunteer programs. Speaking Wednesday in New Orleans, Points of Light's board chair Neil Bush told the organization's annual conference that the capacity volunteers add to nonprofits will have a huge impact on communities. 'Our mission is to make volunteering and service easier, more impactful, more sustained," Bush said. "Because, let's be honest, the problems in our communities aren't going to fix themselves.' According to data from the U.S. Census Bureau and AmeriCorps, the rate of participation has plateaued since 2002, with a noticeable dip during the pandemic. Susan M. Chambré, professor emerita at Baruch College who studied volunteering for decades, said Points of Light's goal of doubling the number of volunteers was admirable but unrealistic, given that volunteer rates have not varied significantly over time. But she said more research is needed into what motivates volunteers, which would give insight into how to recruit people. She also said volunteering has become more transactional over time, directed by staff as opposed to organized by volunteers themselves. In making its case for increasing volunteer participation in a recent report, Points of Light drew on research from nonprofits like Independent Sector, the National Alliance for Volunteer Engagement and the Do Good Institute at the University of Maryland. Sirangelo said they want to better measure the impact volunteers make, not just the hours they put in, for example. They also see a major role for technology to better connect potential volunteers to opportunities, though they acknowledge that many have tried to do that through apps and online platforms. Reaching young people will also be a major part of accomplishing this increase in volunteer participation. Sirangelo said she's observed that many young people who do want to participate are founding their own nonprofits rather than joining an existing one. 'We're not welcoming them to our institutions, so they have to go found something,' she said. 'That dynamic has to change.' As the board was considering this new goal, they reached out for advice to Alex Edgar, who is now the youth engagement manager at Made By Us. They ultimately invited him to join the board as a full voting member and agreed to bring on a second young person as well. 'I think for volunteering and the incredible work that Points of Light is leading to really have a deeper connection with my generation, it needs to be done in a way that isn't just talking to or at young people, but really co-created across generations,' said Edgar, who is 21. Karmit Bulman, who has researched and supported volunteer engagement for many years, said she was very pleased to see Points of Light make this commitment. 'They are probably the most well known volunteerism organization in the country and I really appreciate their leadership,' said Bulman, who is currently the executive director of East Side Learning Center, a nonprofit in St. Paul. Bulman said there are many people willing to help out in their communities but who are not willing to jump through hoops to volunteer with a nonprofit. 'We also need to recognize that it's a pretty darn stressful time in people's lives right now,' she said. "There's a lot of uncertainty personally and professionally and financially for a lot of people. So we need to be really, really flexible in how we engage volunteers." ___
Yahoo
11 minutes ago
- Yahoo
What is the bond market and why is everybody so worried about it?
The bond market doesn't make headlines nearly as often as its more exciting cousin, the stock market, but when it does, look out. At least twice in 2025, bond investors have reacted negatively to U.S. President Donald Trump's policies, spooked first by his trade war and more recently by the growing U.S. government debt. Those join a list of other recent bond market tantrums that suggest investors have growing concerns about the state of government finances around the world. But just what is the bond market, how does it work and why is it such a problem when investors get jittery about it? The Financial Post explains. The bond market is a financial market where governments, companies and investors can issue, buy and sell debt in the form of — you guessed it — bonds. For governments, selling a new bond raises the funds needed to finance public spending, while a business might use the proceeds for corporate operations or an acquisition. In return, bonds provide investors with periodic interest payments, usually at a fixed interest rate, and guarantee the repayment of the principal at maturity. Government bonds can come in a range of durations from months all the way up to decades. For example, U.S. government debt ranges from one-month Treasury bills to 30-year Treasury bonds. Investors are especially focused on the U.S. bond market because it is the largest in the world, worth about US$47 trillion. This accounts for about 40 per cent of the US$142 trillion global bond market as of 2025, according to the Securities Industry and Financial Markets Association, a U.S. industry trade group. As of the fourth quarter of 2024, investors held US$28 trillion of government debt in Treasuries. Investors buy government bonds because they are seen as safe, especially in contrast to stocks, which can carry more risk, especially during economic turbulence. Bonds pay out steady interest, and there is little risk the government of a major economy such as the U.S. will not repay the principal at maturity — or at least that's the theory. In reality, investors increasingly appear to be questioning whether government bonds, in particular those issued by the U.S., are such a safe bet. Carl Gomez, chief economist and head of market analytics for CoStar Group, said the bond market, like any other market for financial assets, depends on buyers and sellers making trades based on their expectations regarding market conditions. And some recent decisions by the U.S. government have investors feeling like they are taking on more risk with bonds, he said. When Trump unveiled his plan for massive tariffs on other countries on 'Liberation Day' in April, it sent shockwaves through the stock market. Although normally investors would buy bonds as a counterweight to equity risk, something unexpected happened. There was a selloff in the bond market as well, signalling that buyers were losing confidence in the U.S. as a safe place to store their money. The 10-year Treasury yield spiked from less than four per cent on April 4 to 4.5 per cent on April 8, while the 30-year yield topped five per cent. 'People are worried the independence of the Fed could be eroded to some extent, people are worried that the U.S. administration's policies have not been friendly to the allies or to the providers of capital for the U.S. market,' said Jason Daw, the head of North American rates strategy at Royal Bank of Canada (RBC) Capital Markets. 'This has led the market to believe that (foreign) investors are going to be investing less in the U.S and maybe more in their domestic markets.' And with the U.S.'s massive debt, investors question the government's fiscal prudence, weakening demand for U.S. bonds. Trump's 'big, beautiful' tax bill lead to the second big spike in yields this year. Introduced in May, the bill included extended tax cuts and an increase to the national debt ceiling, and would add nearly US$4 trillion to America's US$36 trillion in debt if passed. In the immediate aftermath of the tax bill announcement on May 22, the 10-year yield closed at 4.58 per cent, its highest level since 2023. To make matters worse, credit rating agency Moody's Corp. downgraded America's credit rating due to the country's inability to manage its ballooning debt. Following that up, there was tepid demand at a US$16 billion 20-year Treasury bond auction, another key indicator of the bond market's woes, pushing yields to 5.1 per cent. 'When the government goes to borrow, they auction up the bonds, and get the money from the Treasury,' Gomez said. 'If there are fewer buyers, then that price is going to come down, and the yields will need to go up on those bonds to make them sellable.' When people talk about trouble in the bond market, they often talk about yields spiking. The yield on a bond is how much you would expect to earn on your money per year if you held the bond through to maturity, including both interest payments and price return. While the interest payment on a bond is usually fixed, yields adjust to prevailing expectations about where interest rates are heading. For example, if investors think they will be able to buy a new bond at an interest rate of five per cent, they aren't likely to want an existing bond with an interest rate of only four per cent. So the price of that older bond falls. The big thing to remember is that yields and prices are inversely related: If yields go up or spike, it means the value of the bonds people are holding goes down. 'Similar to how the value of a stock or the equity market could change, the value of bonds changes depending on people's expectations of future interest rates and depending on when you purchase the bond (which could be) at a value that is above or below its maturity level,' said Daw. If bond buyers are concerned that the U.S. fiscal position is deteriorating, they are likely going to want a higher return to offset the risk of lending to Uncle Sam. So, yields go up, and prices go down. Bond yields have been rising across the globe — a striking reversal in a long-term trend of declining yields that persisted over the past 20 to 30 years thanks to modest inflation and economic stability. With inflation higher post-COVID and due to economic jitters from the U.S.-initiated trade war, there is less demand for especially long-term government bonds globally, making it more expensive for governments to borrow. If the U.S. has trouble selling its bonds at rates that allow it to service its debt, it could be forced to raise interest rates to higher and higher levels to placate investors seeking compensation for taking on the greater risk. Increasing interest rates could create a vicious cycle of higher rates making it more expensive for the government to service its debt, leading to bigger deficits and more debt, producing greater risk that buyers will want to be compensated for with higher interest rates. Most importantly, the U.S. relies on the sale of its Treasury bonds to fund its operations. If buyers don't want to buy bonds, the government could struggle to pay its bills, especially if there aren't sufficient tax revenues, Gomez said. 'Ultimately, it can lead to a financial crisis,' he said. 'It circles down across the whole financial system into the real economy.' Gomez pointed to Greece as an example. The country toppled into a government debt crisis in 2007, exacerbated by the global financial crisis, and struggled to recover. Major financial rating agencies flagged Greek bonds with 'junk' status in 2010. The country's unemployment rate hit a record 28 per cent in 2014, and poverty and homelessness snowballed. 'This doesn't usually happen to a well-developed country like the United States, given its position in the world,' Gomez said, noting the Fed could step in and be 'the buyer of last resort.' Still, this could lead to major inflation risks caused by 'printing money' and potentially call into question America's long-term debt sustainability, which would result in higher interest rates over the long run, he said. Although Canada's bond market typically follows the same direction as its southern neighbour, Gomez said it has hit a resistance point due to the Bank of Canada cutting interest rates out of step with the U.S. Federal Reserve. Canadian bond yields are getting tugged upward, influenced by what is occurring in the U.S., but they are also being pulled down by the central bank. 'Everybody probably expected at the end of last year that we'd see lower interest rates, lower mortgages,' Gomez said. 'But what's really happening is that the bond market and bond yields in Canada are just going sideways.' If the Fed starts cutting rates more than the Bank of Canada, Daw said it is likely the Canadian bond market will underperform the U.S. Treasury market over the next six to 12 months. Canada's central bank is in a tight spot, as it weighs the upside risks to inflation against the downside risks to growth brought on by U.S. tariffs. The other factor weighing on Canadian market sentiment is the expectation that the federal government and provinces will be issuing plenty of bonds this year to increase spending to support the economy through the trade war. When the supply of bonds goes up, this puts downward pressure on bond prices and upward pressure on bond yields. Canada's debt position doesn't look as grim as the U.S., but it is growing. The U.S. debt to gross domestic product (GDP) ratio was 123 per cent in 2024, while Canada's amounted to 110.8 per cent — but Canada's debt to GDP ratio has been on an upward path since 2022 and is markedly higher than its pre-pandemic levels (where it hovered around the 90 per cent range). Why everyone is worried about the bond market — especially Donald Trump Bond market volatility spells trouble for investors Gomez predicted that the Canadian bond market will outperform the U.S. but added that inflation and global factors will still influence yields. 'The thing about the U.S. is that it is still the centre of the capital markets across the world,' said Gomez. 'So, what happens in the U.S. invariably starts impacting the rest of the world.' • Email: slouis@ Sign in to access your portfolio
The Hill
15 minutes ago
- The Hill
Wall Street gains ground following a solid jobs report
NEW YORK (AP) — Stocks rose on Wall Street Friday following a better-than-expected report on the U.S. job market. The S&P 500 index rose 0.9% in afternoon trading. The benchmark index remains on track to notch a second consecutive winning week. The Dow Jones Industrial Average added 344 points, or 0.8% as of 1:22 p.m. Eastern. The Nasdaq composite rose 1.2% The gains were broad, with nearly every sector in the benchmark S&P 500 rising. Technology stocks, with their outsized values, gave the market its biggest boost. Chipmaker Nvidia jumped 1.6% and iPhone maker Apple rose 1.4%. Tesla rose 5.5%, regaining some the big losses it suffered on Thursday when Trump and Musk sparred feverishly on social media. Circle Internet Group, the U.S.-based issuer of one of the most popular cryptocurrencies, rose 43%. That adds to its 38.7% gain from Thursday when it debuted on the New York Stock Exchange at $60 per share. U.S. employers slowed their hiring last month, but still added a solid 139,000 jobs amid uncertainty over President Donald Trump's trade war. The closely-watched monthly update reaffirmed that the job market remains resilient, despite worries from businesses and consumers about the impact of tariffs on goods going to and coming from the U.S. and its most important trading partners. 'It looks like, for now, everything is kind of running smoothly,' said Chris Zaccarelli, chief investment officer for Northlight Asset Management. 'Investors see that as a positive, but we also haven't seen the full effect of tariffs yet.' President Donald Trump's on-again-off-again tariffs continue to weigh on companies. Lululemon Athletica plunged 20.2% after the maker of yoga clothing cut its profit expectations late Thursday as it tries to offset the impact of tariffs while being buffeted by competition from start-up brands. Lululemon joins a wide range of companies, from retailers to airlines, who have warned investors about the potential hit to their revenue and profits because of tariffs raising costs and consumers potentially tightening their spending. Hopes that Trump will lower his tariffs after reaching trade deals with other countries have been among the main reasons the S&P 500 has rallied back so furiously since dropping roughly 20% from its record two months ago. It's now back within 2.5% of its all-time high. The economy is already absorbing the impact from tariffs on a wide range of goods from key trading partners, along with raw materials such as steel. Heavier tariffs could hit businesses and consumers in the coming months. The U.S. economy contracted during the first quarter. Recent surveys by the Institute for Supply Management, a trade group of purchasing managers, found that both American manufacturing and services businesses contracted last month. On Tuesday, the Organization for Economic Cooperation and Development forecast 1.6% growth for the U.S. economy this year, down from 2.8% last year. The uncertainty over tariffs and their economic impact has put the Federal Reserve in a delicate position. 'All things being equal, you can clearly see they are on hold,' Zaccarelli said. The central bank is holding its benchmark interest rate steady as it worries about tariffs reigniting inflation. It fought hard, using interest rate increases, to ease inflation rates back toward its target of 2% and rates have been hovering just above that level. The Fed has been hesitant to cut interest rates in 2025 after trimming rates three times late last year. While lower interest rates can give the economy a boost, they can also push inflation higher. That could be especially damaging if import taxes are also raising costs for businesses and consumers. Wall Street expects the central bank to hold rates steady at its June meeting, but traders are forecasting that it will have to cut interest rates later this year in an effort to prop up the economy. In the bond market, Treasury yields made significant gains. The yield on the 10-year Treasury rose to 4.49% from 4.39% late Thursday. The two-year Treasury yield, which more closely tracks traders' expectations for what the Federal Reserve will do with overnight interest rates, rose to 4.04% from 3.92% late Thursday. Markets in Asia were mixed and markets in Europe were were mostly higher. ___ AP writers Elaine Kurtenbach and Matt Ott contributed to this report.
