First jobs report since Trump's tariffs revealed
The US jobs market just pulled off another surprise — Wall Street took notice. Employers added 177,000 jobs in April, blowing past analyst predictions of 135,000. The unemployment rate held steady at 4.2 percent, easing fears that tariffs and sweeping federal job cuts had already begun to erode the workforce.
It's the second month in a row that job growth has outpaced predictions: payrolls initially increased by 228,000 in March (it was eventually revised down to 185,000). US stock index futures extended gains after the stronger-than-expected jobs report calmed worries over the health of the labor market amid tensions of a global trade war.
At 8.30am ET, futures for the Dow Jones were up 299 points, or 0.73 percent, for the S&P 500 were up 42.25 points, or 0.75 percent, and for the Nasdaq were up 139.5 points, or 0.70 percent. 'There are fears that falling consumer confidence and the volatile trade policies from the Administration could ultimately weigh on retail sales and the labor market,' Bret Kenwell, the US investment and options analyst at eToro told DailyMail.com.
'Although consumers have been shifting how they spend their money, they're still spending, and that can keep powering the US economy forward.' April's jobs numbers also extended a historic streak, according to the US Bureau of Labor Statistics.
Digging deeper into April's numbers, the US saw surprising growth in several key employment sectors. Transportation and warehousing companies added 29,000 jobs last month, suggesting that companies have been stocking up before tariff impacts smack US consumers.
'Let's not fool ourselves, things are going to get worse later this year, probably later in the summer,' Robert Frick, Navy Federal Credit Union's corporate economist, told CNN. Earlier this week, the US reported its gross domestic product (GDP) ratings. They were far less rosy for the US economy.
The numbers, which compares the money sloshing into and out of the US from January through March, showed the US economy contracted by 0.3 percent. Previously, the US had expanded by 2.4 percent.
Want more stories like this from the Daily Mail? Visit our profile page and hit the follow button above for more of the news you need.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
2 hours ago
- Reuters
Nasdaq CEO says IPO demand boosted despite tariff worries, banks on Texas boom
June 5 (Reuters) - Exchange operator Nasdaq (NDAQ.O), opens new tab is holding active talks with companies considering stock market debuts, CEO Adena Friedman said on Thursday, underscoring the U.S. economy's resilience and signaling renewed market vigor. Several high-profile companies, including those in risk-heavy sectors such as crypto and financial technology, have successfully launched listings in recent weeks, pointing to pent-up demand and improving market conditions. At the Piper Sandler Global Exchange & Trading Conference, Friedman said the foundation of the U.S. economy remained strong and its resilience continued to support market activity. "People are continuing to put capital to work. Companies are putting capital to work. They're investing and the capital markets have gone through a lot of volatility, but that's also starting to kind of moderate," Friedman said, adding that there was more opportunity for the IPO window to really open up now. Still, some firms exposed to trade policy uncertainty were adopting a cautious approach and holding off until there is greater clarity. "Sectors that are more impacted by the potential tariff environment, it's going to be harder for investors to predict the future of those companies... I think those companies are taking a little bit more of a wait-and-see approach," Friedman said. Listings on the Nasdaq and rival Intercontinental Exchange have been closely watched as a barometer for renewed risk appetite and investor sentiment following a years-long slowdown in new listings. NYSE President Lynn Martin also said earlier on Thursday that public markets were ready for well-prepared companies even amid tariff concerns. Friedman highlighted Texas as an emerging capital markets hub, praising the state's pro-business environment and growth potential. "It's a growth area for us," she said, adding that the state has a pro-business environment and companies are increasingly moving their headquarters to or establishing themselves in Texas. Elon Musk-led Tesla (TSLA.O), opens new tab and SpaceX, as well as tech giants Oracle (ORCL.N), opens new tab and Hewlett Packard Enterprise (HPE.N), opens new tab, have moved to the Lone Star State in recent years, attracted by a favorable tax climate, lower living costs and reduced energy costs. In March, Nasdaq had said it would open a regional headquarters in Texas, deepening its presence in a state that is fast emerging as a major financial hub rivaling New York. A foothold in Texas could enhance the exchange's reach among the state's leading industries, including energy and manufacturing.
Finextra
4 hours ago
- Finextra
Fintech challenges due to new US policies: By Konstantin Rabin
The global fintech sector has faced unprecedented challenges lately due to rapid changes in U.S. policies. The second term of President Trump has been a bumpy road for financial markets and businesses worldwide. Frequent updates and announcements about tariffs and geopolitics shook markets as well as the global fintech environment. What is a good business idea one day, turns out completely useless on another. The Trump administration's deregulatory agenda, 'America First' and crypto-friendly stance promise to reshape fintech operations and cross-border transactions. The State of the New U.S. Policy Landscape The Trump administration is known for its anti-biden tone and many of Biden-era policies are about to reverse. As a result, the landscape can shift to different scenarios where some fintechs thrive while others struggle. Deregulation accelerated It is expected that the partial rollback of Dodd-Frank will be resumed which will reduce the compliance burden for fintech leading to more intense competition. This has the potential to lower entry barriers for new startups meaning more and more new fintech companies will be introduced, which will make the life of established startups more difficult as they have to face many competitors. Cypro policies reversed Trump promised to end the 'persecution' of crypto and it includes rescinding of SEC's Staff Accounting Bulletin 121 which was blocking bank crypto custody. It is no secret that the blockchain sector is home to a plethora of revolutionary startups especially fintech companies and this stance is very positive. However, this also introduces compliance challenges for crypto fintech startups which leaves uncertainty on the table. Capital rules changed The Basel III Endgame proposal will likely get scrapped easing capital requirements for banks partnering with fintechs. Also, CFBP rules on 'open banking' and nonbank payment supervision face revision which eliminates some challenges. FX Volatility: The Silent Fintech Growth Killer? Currency fluctuations have become extremely volatile lately due to tariff announcements. This can have profound effects on fintech startups that are directly involved with currencies. As commented by experts from Luxren Capital: 'Unstable FX rates pose existential risks for international fintech due to margin compression in volatile quarters - forcing them to choose between absorbing losses or increasing pricing on services.' Transferring costs to end-users makes fintechs less competitive to clients but due to foreign exchange volatility, this might be a reality for fintechs. This might seem like a little issue at first but financial technology companies are mostly involved with currencies and heightened volatility directly impacts their profitability and service quality. Fintechs facilitating cross-border transactions and converting one currency into another are especially vulnerable to FX volatility caused by Trump's tariff announcements. This volatility is not just a treasury issue either as it can cascade into payment failure, and settlement delays, and negatively affect the company's reputation. Trump's Tariffs Both stock market and foreign exchange volatility are primarily caused by Trump's announcements regarding tariffs. Many startups experience serious turbulence as they face both stock price crashes and currency risks simultaneously coupled with increased competition in the sector. Tariffs directly affect the economy and companies that face higher costs are naturally prone to bankruptcy despite the President's pro-business stance. Immigration barriers Trump is also known for his anti-immigration rhetoric and policies. Trump's anticipated H-1B visa cuts can starve fintechs of 40% of their engineering talent, which has a serious impact. While AI can replace many of the jobs it can not keep up with the decline of this scale. Tariffs can also force fintech to establish elsewhere like Ireland and Mexico to acquire talent and maintain low costs. Compliance fracturing The U.S. regulatory landscape that consists of 50 state regimes plus federal agencies creates minefields for fintechs. Data privacy fragmentation becomes a real issue as Biden's 2024 Executive Order for unified biometric and genomic data rules might get revoked. There are also licensing inconsistencies across US states. Money transfer licenses which are required in 50 states cost fintechs 500k-2M dollars annually, which makes it difficult to launch new startups without strong capital support. The OCC's fintech charter is currently blocked and it could simplify this but faces opposition from state regulators, making fintech life difficult.
NBC News
4 hours ago
- NBC News
Procter & Gamble to cut 7,000 jobs as part of broader restructuring
Procter & Gamble will cut 7,000 jobs, or roughly 15% of its non-manufacturing workforce, as part of a two-year restructuring program. The layoffs by the consumer goods giant come as President Donald Trump 's tariffs have led a range of companies to hike prices to offset higher costs. The trade tensions have raised concerns about the broader health of the U.S. economy and job market. P&G CFO Andre Schulten announced the job cuts during a presentation at the Deutsche Bank Consumer Conference on Thursday morning. The company employs 108,000 people worldwide, as of June 30, according to regulatory filings. P&G faces slowing growth in the U.S., the company's largest market. In its fiscal third quarter, North American organic sales rose just 1%. Trump's tariffs have presented another challenge for P&G, which has said that it plans to raise prices in the next fiscal year, which starts in July. The company expects a 3 cent to 4 cent per share drag on its fiscal fourth-quarter earnings from levies, based on current rates, Schulten said. Looking ahead to fiscal 2026, P&G is projecting a headwind from tariffs of $600 million before taxes. P&G, which owns Pampers, Tide and Swiffer, is planning a broader effort to reevaluate its portfolio, restructure its supply chain and slim down its corporate organization. Schulten said investors can expect more details, like specific brand and market exits, on the company's fiscal fourth-quarter earnings call in July. P&G is projecting that it will incur non-core costs of $1 billion to $1.6 billion before taxes due to the reorganization. 'This restructuring program is an important step toward ensuring our ability to deliver our long-term algorithm over the coming two to three years,' Schulten said. 'It does not, however, remove the near-term challenges that we currently face.' P&G follows other major U.S. employers, including Microsoft and Starbucks, in carrying out significant layoffs this year. As Trump's tariffs take hold, investors are watching Friday's nonfarm payrolls report for May for signs of whether the job market has started to slow. While the government reading for April was better than expected, a separate reading this week from ADP showed private sector hiring was weak in May. Shares of P&G fell more than 1% in morning trading on the news. The stock has fallen 2% so far this year, outstripped by the S&P 500′s gains of more than 1%. P&G has a market cap of $407 billion.
