U.S. Job Growth Surges 177,000, Tariffs Cloud Outlook

The U.S. economy is showing mixed signals, with job growth exceeding forecasts but economists warning about the delayed impact of tariffs. Nonfarm payrolls rose by 177,000 in April, surpassing analyst predictions of 133,000, indicating a robust job market. However, the unemployment rate remained unchanged at 4.2%, suggesting that the labor market is stable but not improving significantly. The economic outlook is uncertain as the full effects of recent tariff restrictions have yet to be felt.

Financial markets have reacted cautiously to the economic data. The S&P 500 extended its winning streak to 10 days, reversing declines that occurred after the Liberation Day. Market participants are closely monitoring U.S.-China trade talks and Federal Reserve actions, as these factors will significantly influence future economic policies and market sentiment.

President Trump's decision to avoid meeting with Chinese presidential staff this week has added to the uncertainty. His discussions about potential trade agreements with other nations have kept traders on edge, as market reactions are closely tied to trade developments. The outcome of these discussions could lead to new agreements or continuing disputes, further impacting market stability.

The Federal Reserve is expected to maintain current interest rates in its upcoming policy session. Inflationary pressures are leveling off, but import tariffs are a concern for analysts due to their potential impact on prices. The central bank faces a critical decision: whether to resist political pressure for rate cuts or adjust its approach based on emerging market conditions. This decision will have significant implications for the U.S. economy and global financial markets.

Bitcoin's price has fallen below $95,000 due to increasing economic uncertainties ahead of the Federal Reserve meeting. The ongoing market uncertainty has traders considering possible price drops to $90,000 or below. Despite the financial losses reported by Strategy due to new accounting requirements for digital assets, the company has doubled its capital-raising target to $84 billion, affirming its long-term commitment to Bitcoin. This move underscores the company's belief in the future prosperity of digital assets, despite current market volatility.