The U.S. economy added fewer jobs than expected in February

The unemployment rate rose slightly to 4.1% from 4.0%, while average hourly wage growth slowed to 0.3% month-over-month. Analysts viewed the jobs report as a modest boost to growth sentiment, with wages and unemployment moving in a dovish direction.

Investors are watching for comments from Fed Chair Jerome Powell, as the Federal Reserve recently paused rate cuts, citing labor market resilience and policy uncertainties. The report also comes amid concerns over the economic impact of President Trump’s tariff plans.

Additionally, government layoffs may weigh on future job numbers, with around 100,000 federal workers departing due to efforts led by Tesla CEO Elon Musk and the Department of Government Efficiency (DOGE) to reduce government size, facing legal challenges.