The U.S. economy added 151,000 jobs in February, slightly below the 12-month average of 168,000, causing the unemployment rate to edge up to 4.1%. This modest job growth, coupled with a slight increase in unemployment, has raised concerns about a potential economic slowdown.
Further contributing to economic uncertainty, the U.S. imposed tariffs on imports from Canada and Mexico on March 4, 2025, leading to retaliatory measures from these nations. These trade tensions have heightened market volatility, influencing investor sentiment and commodity prices.
In the U.S., the Federal Reserve's Beige Book reported a slight increase in economic activity since mid-January. However, businesses and households expressed growing uncertainty regarding policies on tariffs, immigration, and federal spending. This uncertainty has led some businesses to delay investments, adding to market volatility.