First tariffs, now payrolls drive stocks lower

An abysmal set of payrolls have dealt a further blow to stocks reeling from tariff news, says Chris Beauchamp, Chief Market Analyst at online trading platform IG.

Stocks in full retreat as payrolls stick the boot in

Given how markets had been trading this morning after the tariff news, it would have taken a very solid payroll report to avoid further losses. As it was, today’s dismal number did nothing for sentiment. What really drove the gloomy mood this afternoon was the substantial set of revisions to recent months data. After days spent worrying about the impact of tariffs on prices, the fear is now that hiring is poised to collapse.

CAC40 and US small caps lead the losses

In selloffs, the heaviest losses are often seen in those markets that were the weakest on the way up. In Europe the CAC40 has lagged far behind its peers, and today it has slumped 3%, on course for a six-week low. Meanwhile, on Wall Street the Russell 2000 is once more in the doghouse. Lacking the profitability of its mega-cap cousins, the index’s members often the last to be bought and the first to be sold.