President Donald Trump promised that 2026 would be a bumper year for economic growth. Instead it's kicked off with job losses, rising gasoline prices and more uncertainty about America’s future. In his recent State of the Union address, Trump said "the roaring economy is roaring like never before.” The latest batch of data on jobs, gasoline prices and the stock market suggests otherwise. There's a gap between the boom that Trump has predicted and the results he's produced. And that could set the tone in this year’s midterm elections as he tries to defend Republican majorities in the House and Senate.
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American employers unexpectedly cut 92,000 jobs last month, a sign that the labor market remains under strain. The unemployment rate blipped up to 4.4%. The Labor Department reported Friday that hiring deteriorated from January, when companies, nonprofits and government agencies added a healthy 126,000 jobs. Economists had expected 60,000 new jobs in February. Revisions also cut 69,000 jobs from December and January payrolls. The surprisingly weak employment picture in February adds to the economic uncertainty over the war with Iran, which has caused oil prices to surge and saddled business and consumers with unforeseen costs.
Employers unexpectedly cut 92,000 jobs last month and unemployment edges up to 4.4% with labor market under pressure.
China’s ceremonial parliament meets in Beijing this week as leaders use the event to set policy and economic goals. On Thursday, the National People’s Congress and a top advisory body open the annual “Two Sessions.” The party leadership sets the agenda and lawmakers then ratify decisions with near-unanimous votes. Experts say debate has narrowed under President Xi Jinping with the economy taking center stage. The premier gives growth and other targets and observers watch for more detail on a new five-year plan. China faces weak consumer demand, a troubled property market and U.S. tariffs. Analysts expect few personnel moves.
China’s progress in building a modern economy, evident in its kung-fu fighting robots and self-parking cars, is hitting limits as a downturn in its housing industry drags on and young people struggle to find jobs. The gap between the ruling Communist Party’s high-tech, AI driven ambitions and the hard realities for many Chinese is the backdrop for the annual meeting of the country’s largely ceremonial national legislature, which begins Thursday. Beijing is expected to release the country's full five-year blueprint for 2026-2030 and outline its annual economic growth target for this year during the meetings, which bring about 3,000 deputies to Beijing.
U.S. stocks sank as Wall Street kept punishing companies that could become losers in the AI revolution. A surprisingly discouraging update on inflation also hurt the market Friday, while oil prices climbed with worries about tensions between the United States and Iran. The S&P 500 fell 0.4% to finish just its second losing month in the last 10. The Dow Jones Industrial Average dropped 1.1%, and the Nasdaq composite fell 0.9%. Block’s stock soared after cutting nearly half its workforce because it said AI tools can replace them. Treasury yields fell in the bond market as investors sought safer places for their money.
AP Wire
The FBI has fired additional agents who worked on an investigation into President Donald Trump, this time terminating employees who participated in the probe into the Republican’s hoarding of classified documents. That's according to people familiar with the matter. The firings disclosed Wednesday are part of a broader personnel purge under the leadership of Director Kash Patel, a Trump appointee who, over the last year, has pushed out dozens of employees who either contributed to investigations of the president or who were perceived as not in alignment with the administration’s agenda. The Justice Department has engaged in similarly sweeping firings of prosecutors since Trump took office last year.
U.S. stocks rose and erased their losses for the week so far, as Nvidia and other technology companies led the way. The S&P 500 gained 0.8% Wednesday for a second straight gain following Monday’s swoon. The Dow Jones Industrial Average added 0.6%, and the Nasdaq composite climbed 1.3% as stocks in software and other tech-oriented industries continued their rebound. Nvidia was one of the strongest forces lifting the market ahead of its highly anticipated profit report, which arrived after trading ended for the day. Stock indexes rose in Europe and Asia, while Treasury yields held steady.
Iranians face a sudden surge in prices for food and daily essentials, and many families say they cannot keep up. The mounting costs only further strain the population as they fear a possible war with the U.S. and wrestle with the aftermath of protests that swept the country last month. The rial keeps falling against the dollar, hiking the cost of imports and raw materials. Uncertainty over potential war only drives prices higher. Shoppers in Tehran say staples like potatoes, milk, and meat have risen sharply in just a month. Some are buying in bulk in case the U.S. strikes.
President Donald Trump sought in his first State of the Union address to sell Americans on the idea of a booming economy, falling prices, and soaring jobs, yet he faces a skeptical public with a much gloomier view. Barely 12 hours before his speech, in fact, The Conference Board, a business research group, released its latest consumer confidence report. It showed that overall confidence in the economy remains historically low, and is barely above the level it plunged to in the depths of the COVID recession. Other polling has yielded similar results: Only 39% of Americans approve of Trump’s economic leadership, according to the latest Associated Press-NORC Center for Public Affairs Research survey.