On February 8, according to the Financial Association (Editor Niu Zhanlin), on Friday in East America time, the three major US stock indexes collectively fell under the dual pressure of inflation concerns and tariff threats.

During a meeting with visiting Japanese Prime Minister Shinzo Abe, Trump stated that he plans to announce 'reciprocal tariffs' measures next week. This means that the trade war between the USA and its economic partners will significantly escalate, although he did not specify which countries would be affected.

Mark Hackett, Chief Market Strategist at Nationwide, stated: 'Today, the non-farm employment report set the tone for the market early on, but after Trump issued tariff threats, people began to focus on changes in trade policy and its impact on the economy and the market, overshadowing the effects of the non-farm data.'

The US Bureau of Labor Statistics released data earlier today showing that the number of non-farm jobs in January was 0.143 million, lower than economists' expectations of 0.17 million, while the unemployment rate was 4%, below the expected 4.1%.

Although the employment growth in January slowed more than expected, the 4% unemployment rate may give the Federal Reserve reason to refrain from cutting interest rates at least until June. Futures traders currently expect the Fed to only cut rates once this year.

Seema Shah, an analyst at Signia Asset Management, stated: 'The overall situation remains that the labor market is resilient, and wage pressures continue, which gives the Fed no reason to immediately lower policy interest rates.'

Another survey showed that consumer confidence in the USA unexpectedly dropped to a seven-month low in February, with inflation expectations surging. Households expect the inflation rate to skyrocket to 4.3% next year, the highest level since November 2023.

Federal Reserve Governor Cook stated that it is appropriate to keep the benchmark interest rate unchanged for a period of time, given the stability of the job market, limited progress on inflation in recent months, and uncertainty regarding fiscal and trade policy prospects.

Glenmede Analyst Jason Pride pointed out that the Federal Reserve has delayed expectations for the next rate cut, and today's non-farm payroll report validates this approach.

Market Dynamics

By the close, the Dow Jones Industrial Average dropped 444.23 points, down 0.99%, ending at 44,303.40 points; the Nasdaq fell 268.59 points, down 1.36%, closing at 19,523.40 points; the S&P 500 Index declined by 57.58 points, down 0.95%, closing at 6,025.99 points.

All 11 sectors of the S&P 500 Index were down, with the Consumer Discretionary sector experiencing the largest drop of about 2.5%, followed by the Real Estate sector down 0.42%, Financial sector down 0.59%, and Industrial sector down 0.34%.

Performance of Popular Stocks

Most large technology stocks fell, with Tesla and Google dropping over 3%, Apple over 2%, Microsoft and Intel over 1%, while Netflix fell slightly; NVIDIA and Meta saw slight increases.

Amazon fell over 4%, after disappointing performance guidance from the e-commerce giant, and capital expenditures are expected to reach up to $100 billion.

United States Steel fell by 5.8%, as Trump hinted during a meeting with Japanese Prime Minister Shigeru Ishiba that he continues to oppose Japan's acquisition of American steel companies, disappointing those who hoped for a revival of the deal.

Uber Technologies surged by 6.6%, as billionaire hedge fund manager Bill Ackman revealed he holds 30.3 million shares of Uber stock, which amounts to a market cap of 2.3 billion dollars at a price of approximately 75 dollars per share.

Most China Concept Stocks rose, with the Nasdaq China Golden Dragon Index increasing by 1.35%. Li Auto rose by over 4%, Alibaba by over 3%, iQIYI and Bilibili by over 2%, and PDD Holdings by over 1%.

Company news

[Germany's electric vehicle sales soared by 54% in January, but Tesla's sales decreased by 1,875 units.]

Last month, Tesla was the biggest loser in Germany's electric vehicle market, as Consumers turned their backs on this brand held by Elon Musk and opted to purchase more Autos from Volkswagen, Seat, and BMW. More detailed data released on Friday by the Federal Motor Transport Authority of Germany showed that Volkswagen grew the fastest, with electric vehicle sales increasing by 6,521 units year-on-year. Volkswagen's subsidiary brand Seat had the second highest increase, reaching 2,520 units. The authoritative institution KBA reported that total electric vehicle sales in Germany skyrocketed by 54% year-on-year in January, but Tesla's sales fell by 1,875 units. Tesla's market share in the EU's largest electric vehicle market dropped from 14% a year ago to 4%, falling behind brands like Skoda, Mercedes-Benz, and Audi.

[Reportedly, SoftBank is set to invest a huge amount in OpenAI, with its valuation expected to reach 300 billion dollars.]

Sources reveal that Japan's SoftBank Group is about to finalize a 40 billion dollar investment in American OpenAI. Sources added that SoftBank will pay this amount within the next 12 to 24 months, with the first payment expected to be made as early as this spring. OpenAI's pre-investment valuation is 260 billion dollars, which will rise to 300 billion dollars post-investment. Last month, there were reports that the original target valuation for this round of financing was 340 billion dollars, but sources now indicate that this figure will be close to 300 billion dollars.

[Auto Manufacturers urge the USA Department of Transportation to quickly restart the federal electric vehicle charging program]

A group representing auto manufacturers and electric vehicle charging companies urged the USA Department of Transportation on Friday to quickly restart a $5 billion government electric vehicle infrastructure program. On Thursday, the Trump administration announced it would suspend the electric vehicle charging program and cancel approvals for state electric vehicle charging plans pending new review. The Electric Drive Transportation Association (whose members include General Motors, Toyota, BorgWarner, EVGo, Walmart, and others) stated that the association urged the Trump administration to "rapidly restore the critical work of the program, minimizing uncertainty for states and their businesses."