How the stock market made back all its losses after Trump escalated the trade war

But what investors call “hard data,” such as employment numbers, indicated the economy was still doing OK. As of Friday, when the government said employers had added 177,000 jobs in April, the hard numbers appeared to have a advantage over the weak sentiment. The Federal Reserve cut rates three times at the end of 2024, but then implemented a pause of its own by keeping rates steady, in part to assess the impact of the Trump trade policy. The strong jobs report seemed to give the Fed clearance to keep rates where they are for now — despite Trump repeating his call for cuts — but the market is still looking for 3 cuts before the end of the year.