Both the S&P 500 (SPX) and the Nasdaq 100 (NDX) are down by over 1% on Friday following a lackluster jobs report from the Bureau of Labor Statistics (BLS).
Claim 30% Off TipRanks
New trading tool for QQQ bullsIn February, the unemployment rate reverted to 4.4% as the U.S. economy shed 92,000 jobs, well below the consensus estimate for 55,000 additions. On top of that, the BLS revised January and December’s job additions lower by a combined 69,000. Since May 2025, the economy hasn’t added a single job on a net basis.
Higher Unemployment Pressures Consumer Spending
With fewer Americans employed, spending could take a hit, lowering gross domestic product (GDP) in the process. Even the healthcare sector, which has remained resilient in recent months, showed a decline of 28,000 jobs due to a Kaiser Permanente strike.
Lower employment could already be taking a toll on U.S. retail sales, which dropped by 0.2% month-over-month, slightly better than the estimate for a 0.3% decline. Core retail sales, which exclude several volatile items like autos and gasoline, were unchanged and fell short of expectations for a 0.1% rise.