U.S. Markets Teeter as Investors Brace for Key Jobs Data Amid Tariff Tensions

On Wednesday, U.S. stock index futures were subdued as investors anticipated crucial jobs data, delayed due to a partial government shutdown, while also observing corporate earnings closely.

The employment report is expected to indicate a rise in U.S. job growth notwithstanding a sluggish labor market caused by tariff uncertainty and tighter immigration policies. Such data might soothe expectations for the Federal Reserve's interest rate cuts, especially with retail sales stalling unexpectedly, pushing the odds of an April rate reduction from 32.2% to 35.5%, according to the CME Group's FedWatch tool.

Though markets largely bet on the first cut happening in June, contingent upon U.S. President Donald Trump's Federal Reserve chair nominee Kevin Warsh's Senate approval, surprise shifts in labor figures or Friday's inflation data could swiftly alter the rate outlook. The cloud and network security provider Cloudflare's shares soared 14% following stronger-than-expected sales forecasts, while Robinhood and Lyft shares fell due to disappointing earnings. As legislative battles over tariffs continue, Moderna's shares fell 8.8% after an FDA decision on its vaccine application.