Stocks Rebound Before Jobs Report; Broadcom Soars 16%, Bitcoin Struggles Below $89K

Investors Brace for Jobs Report as Trade Policy Concerns Weigh on Markets

Global markets remain on edge Friday morning as investors assess the latest U.S. trade policy shifts and await the February nonfarm payrolls report. After a sharp sell-off on Thursday, stock futures are attempting a modest recovery, while cryptocurrencies remain under pressure. Traders are looking for clarity on the Federal Reserve’s policy path and how escalating tariffs might impact corporate earnings.

Key Market Drivers: Trade Policy and Jobs Report

Trade uncertainty continues to rattle markets after President Trump announced that tariffs on Canadian and Mexican imports would be delayed until April 2 for goods covered under the USMCA agreement. While the exemption provided some relief, investors remain concerned about the broader economic impact of rising protectionism.

Meanwhile, the February jobs report is set to be a major market-moving event. Economists polled by Dow Jones expect the U.S. to have added 170,000 jobs, with the unemployment rate holding steady at 4%. A stronger-than-expected report could reinforce concerns that the Fed will maintain higher interest rates for longer, while weaker data may reignite speculation about rate cuts.

Stock Market: Futures Rebound After Thursday’s Sell-Off

Stock futures are pointing higher in early trading on Friday following Thursday’s sharp declines. Dow futures rose 63 points (+0.15%), while S&P 500 futures gained 0.28%, and Nasdaq 100 futures led with a 0.42% advance.

On Thursday, equities tumbled as investors struggled to digest shifting trade policies. The Dow lost more than 400 points, while the Nasdaq Composite officially entered correction territory, down over 10% from its recent high. The S&P 500 is now down 3.6% for the week, the Dow has lost 2.9%, and the Nasdaq has fallen 4.1%.

“Markets are struggling to price in the impact of tariffs, especially when policies seem to be evolving rapidly,” said Jamie Cox, managing partner at Harris Financial Group.

Overnight Stock Moves: Broadcom Soars, Costco Disappoints

Broadcom surged 16% in extended trading after reporting stronger-than-expected Q1 earnings, driven by a 77% year-over-year increase in AI-related revenue. The company projects AI semiconductor sales will reach $4.4 billion next quarter, reinforcing expectations of continued demand.

Costco, however, delivered mixed results, with revenue exceeding expectations at $63.72 billion but earnings per share missing estimates at $4.02 versus the expected $4.11. CEO Ron Vachris noted that the company is working to minimize the impact of tariffs on consumer prices, but tighter grocery margins remain a challenge.

Crypto Markets Struggle After Bitcoin Reserve Announcement

Bitcoin stabilized around $88,949 early Friday after a volatile session Thursday, when it briefly dropped to $84,688 following President Trump’s executive order to establish a strategic bitcoin reserve. The announcement disappointed traders as it ruled out any immediate government purchases of bitcoin. Other cryptocurrencies, including Ether, XRP, and Solana, remained under pressure.

“Investors were hoping for near-term buying pressure from the government, but that didn’t materialize,” said Steven Lubka of Swan Bitcoin. Analysts warn that unless bitcoin reclaims the $90,000 level, it remains at risk of a pullback toward $70,000.

Market Outlook

With the jobs report looming, short-term market direction remains uncertain. A strong labor market print could reinforce concerns about persistent inflation, keeping equities under pressure. On the other hand, weaker employment data could revive expectations of a more dovish Fed stance, potentially fueling a rebound. With trade policy uncertainty and rate expectations still in flux, market volatility is likely to persist into next week.

More Information in our Economic Calendar.