Wall Street’s confidence in the economy wavered as weak job growth and new tariffs rattled investors. Traders flocked to government bonds, pushing yields down and betting on a rate cut next month. The dollar fell, and the S&P 500 had its worst week since May.

President Trump directed officials to remove the commissioner of the Bureau of Labor Statistics, alleging data politicization. Geopolitical tensions rose as Trump ordered nuclear submarines deployed due to Russian remarks, adding to market unease.

US job growth averages 35,000 in the last three months, prompting increased rate cut likelihood. Economically sensitive companies led S&P 500 retreat amid growth fears. Trump’s tariffs and Fed criticism create uncertainty and market volatility.

Investors wary of economic and geopolitical shocks as US assets falter. Dollar and equities retreat, volatility rises in equity options and bonds. Economic cooling from tariffs and softer labor conditions signal potential Fed action in the coming months.

Renewed weakness in US economy welcomes non-US asset preference. Market volatility, deficit, tariffs, and inflation pose significant risks. Money managers struggle with shifting market narratives and macroeconomic trends, leading to poor performance this year.

Read more at Yahoo Finance: Jobs Data Shatters Wall Street’s Calm