US Labor market data (NFP) and market reaction | March 2025

Strong Job Gains in March Mask Rising Unemployment and Economic Jitters

Despite strong March hiring, concerns linger due to weaker February data, rising unemployment, and broader economic uncertainty linked to government job cuts, trade tensions, and cautious business sentiment. The Federal Reserve held interest rates steady at 4.25%-4.50% in March but faces a tough choice between containing inflation and supporting growth, with markets pricing in about 100 basis points in rate cuts this year. Investors await comments from Fed Chair Jerome Powell for further guidance.