It started out in the green; how did it end up like this? Jobs data, the end of the tariff detente, and a mixed bag of earnings might be to blame. Heading into this afternoon, only the Nasdaq is in the green — up 0.41% as of this writing. Meanwhile, the S&P 500, Russell 2000, and Dow are all in the red; down 0.09%, 0.42%, and 0.72% each.
Investors are clinging to continuing jobless claims, which rose 38,000 week-over-week to 1.97 million. That would indicate that Americans are taking longer to find jobs, stirring worries that America's job market is cooling, if not freezing over. Initial claims, by comparison, also rose week-over-week to 226,000. Neither are happy prints.
Thursday Reading:
Making matters worse, the '90 days of tariff freedom are over, with the White House's most sweeping levies taking effect at midnight. As a result, America's average effective tariff rate has risen to 18.3%, per Yale Budget Lab. That's the highest we've since the 1930s, and if analysts are to be believed, it could become an inflationary factor affecting the economy and markets.
Now, if you don't trust analysts, you can always just ask an average American. But you might not love their answer, either. Earlier today the New York Fed reported its monthly Consumer Inflation Expectations report. And the survey found that consumers' five-year inflation expectations rose month-over-month. Consumers now expect inflation to be 2.9% (previous: 2.6%) over the next five years.
TurboTax Via TheStreet
-- Noah Weidner, markets reporter
