U.S. Stock Market on Edge as Tariff Deadlines and Economic Data Loom

The U.S. stock market faces instability, driven by an impending tariff deadline set by President Trump and potential signs of a slowing economy from an upcoming employment report. Concerns over trade policies and inflation persist, impacting market outlooks and consumer confidence.

The rocky landscape of the U.S. stock market is poised for further turbulence in the upcoming week as it grapples with the repercussions of a crucial deadline for President Trump's tariff plans and a pivotal employment report. The S&P 500, which registered a weekly loss, experienced a sell-off on Friday. This reaction followed data indicating underlying price pressures across the board. Earlier, the S&P 500 slipped into correction territory, declining more than 10% from its peak.

The index currently sits 9.17% below its February high amid persistent uncertainty regarding the vitality of the U.S. economy and ongoing trade policies, which continue to unsettle investors. Trade tensions, ignited by Trump's tariff decisions, have raised fears of reigniting inflation. In April, investors are bracing for heavy volatility following a challenging March. Trump earmarked April 2 as the target date for announcing extensive tariffs, hailing it as a "Liberation Day" for American economic resurgence. However, this has triggered anxiety among businesses and consumers alike.

Investor sentiment underscores the pervasive uncertainty. On Wednesday, Trump's declaration of a 25% tariff on auto imports sent shockwaves through the car industry, causing shares in automakers such as General Motors and Ford to tumble. The equity options market reflects the current climate of instability, with traders opting to pay premiums for imminent protections. The S&P 500, having enjoyed annual returns exceeding 20% for years, is on a downturn, with a 5.12% decline so far in 2025. As investors navigate these choppy waters, eyes remain fixed on the forthcoming U.S. jobs report and first-quarter earnings season.

(With inputs from agencies.)