The US economy added only 22,000 jobs in August, well below expectations of 75,000. June and July figures were revised down by 21,000. Blame Trump’s tariffs and AI for the slowdown, signaling a cooling job market with implications for investors and the Federal Reserve.

The disappointing jobs report is likely to pressure the Fed to cut interest rates on Sept. 17 and signal more cuts ahead. Tough stances on tariffs and immigration are impacting economic data, hinting at a mixed outlook for the rest of the year.

AI is reshaping the labor market early, with implications for investors. Economists warn of a potential recession if job losses continue. Vanguard’s chief economist Joe Davis believes the slowdown is due to a lack of labor supply, not an impending recession.

US Labor Secretary Lori Chavez-DeRemer blames the weak jobs report on the Federal Reserve, pushing for rate cuts to help the American people. Goldman Sachs issues a warning on AI stocks, cautioning that AI investment may be peaking and investors need to see evidence of impact on profits.

Goldman Sachs warns of a potential downturn in AI stocks as investment nears a climax. They stress the need for strong earnings to support stock prices. Recent sell-offs in companies like Salesforce and Nvidia reflect market uncertainty around AI stocks’ future performance.

Read more at Yahoo Finance: The jobs market has entered ‘bizarro’ world: Opening Bid top takeaway