Nasdaq 100 and S&P 500: Struggling After Disappointing Jobs Data, Tariff Uncertainty

Stocks Struggle for Direction as Weak Jobs Data Offsets Tariff Optimism

U.S. stocks opened flat on Wednesday, as traders balanced hopes for a resolution on tariffs against fresh concerns over economic weakness. Early gains fueled by speculation of tariff relief faded after a disappointing private payrolls report signaled a slowdown in job creation.

Are Tariff Hopes Enough to Lift Markets?

Stock futures had rallied overnight after Commerce Secretary Howard Lutnick suggested that President Donald Trump could announce a compromise on tariffs with Canada and Mexico. The possibility of sector-specific relief sent automaker stocks higher, with General Motors and Ford gaining 3.9% and 1.8%, respectively. Stellantisjumped 5.7% on the speculation.

Despite this optimism, Trump remained firm in his stance, saying during a congressional address that some economic disruption from tariffs was acceptable. Markets remained volatile as investors weighed the likelihood of an actual policy shift.

Weak Job Growth Raises Economic Concerns

The market turned lower after ADP’s private payrolls report showed a significant slowdown in hiring. Private employers added just 77,000 jobs in February, far below economists’ expectations of 148,000 and the prior month’s revised 186,000 figure. The weak data reinforced fears of slowing economic growth, adding to concerns that tariffs could further pressure business activity.

Annual wage growth remained steady at 4.7%, suggesting inflationary pressures persist despite weaker hiring. The Nasdaq traded near correction territory, reflecting broader uncertainty about economic resilience.

Sector Performance and Key Earnings Misses

Industrials led the market with a 0.96% gain, followed by materials, which climbed 2.01%. However, energy stocks lagged, falling 1.4% as oil prices retreated. The broader S&P 500 was flat, with strength in consumer discretionary and healthcare offset by losses in utilities and energy.

On the earnings front, Abercrombie & Fitch dropped more than 5% premarket after issuing soft forward guidance. The retailer forecasted fiscal 2025 sales growth of 3% to 5%, below Wall Street’s 6.8% estimate. Despite a strong Q4 earnings beat, concerns over slowing momentum sent shares lower.

Campbell’s also tumbled over 5% after reporting weaker-than-expected revenue and issuing cautious full-year guidance. The company forecasted earnings per share between $2.95 and $3.05, missing analysts’ consensus of $3.13.

What’s Next for Markets?

Traders are closely monitoring upcoming economic data, with Friday’s nonfarm payrolls report in focus. A weak jobs number could reinforce recession fears and influence the Federal Reserve’s next policy move.

Additionally, any concrete announcements from the White House regarding tariff rollbacks could drive short-term market reactions. With uncertainty lingering, markets remain sensitive to both economic data and geopolitical developments.

More Information in our Economic Calendar.