(Bloomberg) — A roller-coaster week for markets is ending on that same note, with stocks almost wiping out losses on news Russia is willing to discuss a temporary truce in Ukraine if there is progress toward a final peace settlement.

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The S&P 500 trimmed most of a slide that earlier approached 1%. The Nasdaq 100 is now down 9.8% from its record – moving away from the threshold of a technical correction. In the first signal of a positive response from President Vladimir Putin to US counterpart Donald Trump’s call for a ceasefire, the offer was conveyed at last month’s talks in Saudi Arabia between top Russian and American officials, according to people familiar with the matter in Moscow.

“What I do know is that volatility seems like the only thing that is certain at the moment,” said Kenny Polcari at SlateStone Wealth. “Investors should make sure they understand that and are prepared for what that means. So, make sure you are well diversified for this ride.”

Bond yields fell, after a mixed jobs report left intact traders’ expectations for three Fed rate cuts this year. The dollar was set for its worst week since November 2022.

US job growth steadied last month while the unemployment rate rose — a mixed snapshot of a market hanging on the balance of quickly changing government policy. Nonfarm payrolls increased 151,000 in February after a downward revision to the prior month. The unemployment rate rose to 4.1%.

“We are not putting much stock in the jobs report at the moment,” said Byron Anderson at Laffer Tengler Investments. “Today’s data was mixed at best, but we still have no clarity on the economy moving forward. Markets, businesses, and consumers do not like uncertainty and that means increased volatility.”

The S&P 500 lost 0.4%. The Nasdaq 100 slid 0.4%. The Dow Jones Industrial Average fell 0.2%.

The yield on 10-year Treasuries declined two basis points to 4.26%. The Bloomberg Dollar Spot Index fell 0.3%.

Wall Street’s Reaction to Jobs:

The solid February jobs report shows that the economy remains healthy, but fears of what could come next are likely to overshadow the positive news from today’s release. Investors are likely to temper their reactions to this morning’s data due to the perception of it being “already stale” given the rapid policy shifts coming from DC.

We were expecting the unemployment rate to tick up this year. The markets should breathe a sigh of relief that there wasn’t a shock in either direction and the report was a mixed bag. The takeaway is that wage data declined which is disinflationary.

Essentially this report provides zero clarity for bond investors. You can argue the Fed will keep rates high or you could say this report means they may need to cut sooner than previously expected.

The best way to describe the February US employment report was that it was one of those rare Goldilocks-type of economic reports. There’s something for everyone. There is a fair chance that the February report is one of the strongest of the year. The report supports our investment theme that 2025 will indeed be the year of a weak dollar, and non-USD assets will continue to outperform.

Given the headlines around federal employment and worries about the economy, today’s jobs report was a huge focus for investors. It didn’t beat economists’ expectations, but there’s a wonder if a better-than-worst-case outcome will be enough to trigger a relief rally on Wall Street.

While the rallies have been short-lived in recent trading, investors are wondering if stocks can string together a few positive sessions in the form of a relief rally. But until there’s more clarity around the current trade war and reassurance around the economy, a “risk-off” mood can linger on Wall Street.

Investors are starting to worry about a noticeable deceleration in first quarter GDP, which is set to be released at the end of April, and that is contributing to the past few weeks of stock market volatility.

Friday’s jobs report may change the calculus for the Federal Reserve’s plans on interest rates this year, and it’s possible that we see the next rate cut come as soon as June. Federal Reserve Chair Jerome Powell is speaking on Friday afternoon, and investors will be looking for his reaction to the recent round of economic data and the market’s broader tariff fears.

The stock market is moving in lockstep with tariff headlines, and that is likely to keep volatility very elevated for the foreseeable future, as the market does not like uncertainty. While we expect the market to find its footing and recover from the tariff-driven selloff, investors should brace for continued choppiness until these uncertainties clear.

We are not putting much stock in the jobs report at the moment. Today’s data was mixed at best, but we still have no clarity on the economy moving forward. Markets, businesses, and consumers do not like uncertainty and that means increased volatility.

The jobs data shows moderating growth and wage pressures. That would normally be welcome as dovish news. However, investors see clouds on the horizon. This could be the calm before the storm of much weaker employment. Tariffs threaten jobs because they threaten supply chains and profits. Uncertainty is in a bull market.

This is a perfect report for stocks today. It provides reason for a short-term bounce in that it wasn’t weak, and the unemployment rate rose with a lower participation rate, which opens the door a bit more for the Fed to get incrementally more dovish. Good news all around and a short-term catalyst for stocks. It doesn’t solve the primary issue but provides relief, for now. Consensus seems to want to fade every rally, so let’s hope this can hold.

No news is… no news. And while investors may justly be inclined to breathe a sigh of relief following today’s jobs report, they shouldn’t exhale for too long as the real news may soon be known.

After a period of head-spinning volatility, today’s employment report was very much an “in-line” report, as several key metrics matched (or closely matched) forecasts. This should provide some much-needed calm to the markets.

But importantly, this report was completed just prior to several major announcements made with respect to government workers, and once these announcements are taken into account, we will likely see signs of weakness going forward.

As a result, we think markets will remain volatile as traders remain on edge. But long-term investors should remain patient, balanced and fully diversified as the range of longer-term outcomes remains exceptionally wide.

Markets largely treated the news as a non-event. The numbers, slightly below expectations especially considering the revisions, were not the significant mishap Wall Street feared.

It’s important to remember that this report is consistent with the narrative of slower economic growth in the US, but not indicative of a recession at this point. This allows the current rotation in the markets to continue and should help cap the recent rise in yields.

This is one way to get the Fed to cut rates. The transition from a reliance on government propping up the economy to allowing the market to stand on its own feet will be a little bumpy. While strong, the jobs market will slow considerably with government in cutting mode.

After the headlines of recent days, there were fears that today’s jobs report would reveal some deeply unsettling news around the health of the labor market. If anything, the report is reassuringly in line with expectations, showing payrolls growth only modestly weaker than in recent months.

Yet, while the worst fears were not met, the report does confirm that the labor market is cooling and that it may require some assistance from the Fed in the coming months. Furthermore, with no shortage of headwinds confronting the U.S. economy, the softening trend is likely to persist and may potentially deepen given the toxic combination of federal government layoffs, public spending cuts, and tariff uncertainty related inertia.

Markets breathed a sigh of relief this morning that the jobs data wasn’t worse than expected. It was largely in line and although the unemployment rate ticked up slightly from 4.0% to 4.1%, that’s still a low number from a historical perspective.

In the day-to-day barrage of headlines – such as tariffs repeatedly being imposed and then removed – it’s easy to get lost in them and forget what ultimately matters. The market cares about employment, productivity, and profits. Inflation can become an issue for profits and if consumers reduce their purchasing, goods’ unit sales drop, and layoffs begin then it can create a downward spiral for the economy, but so far that hasn’t happened.

We’ve felt whipsawed by the on-again off-again tariff news, but we’ve largely held the same course as we began 2025 with: very cautious, risk-off and concerned about valuations and concentration. We’ve been counseling clients since the end of last year that 2025 was likely to be a volatile year because of policy uncertainty and so far, that’s exactly what we’ve seen.

This disappointing news comes at a time when the market is in need of a pick-me-up. With investors already concerned about a growth slow down, we will likely see greater sensitivity to economic data in the coming days and weeks. As a result, this report could further weigh on the market after a forlorn February.

Corporate Highlights:

Broadcom Inc. shares jumped after the chip supplier for Apple Inc. and other big tech companies gave an upbeat forecast, reassuring investors that spending on artificial intelligence computing remains healthy.

Hewlett Packard Enterprise Co. tumbled after it said profit in the coming year would be hurt by tariffs, weak margins on server sales and execution issues. The company also said it would eliminate about 3,000 jobs.

Gap Inc. soared after strong quarterly sales showed that Chief Executive Officer Richard Dickson’s turnaround playbook is working.

Walgreens Boots Alliance Inc. agreed to be purchased by Sycamore Partners for $10 billion, turning one of the oldest, most recognizable US drugstore chains into a private company.

Some of the main moves in markets:

Stocks

The S&P 500 fell 0.4% as of 10:58 a.m. New York time

The Nasdaq 100 fell 0.4%

The Dow Jones Industrial Average fell 0.2%

The Stoxx Europe 600 fell 0.3%

The MSCI World Index fell 0.4%

Currencies

The Bloomberg Dollar Spot Index fell 0.3%

The euro rose 0.8% to $1.0871

The British pound rose 0.3% to $1.2922

The Japanese yen rose 0.3% to 147.52 per dollar

Cryptocurrencies

Bitcoin fell 1.5% to $88,453.53

Ether fell 0.2% to $2,208.98

Bonds

The yield on 10-year Treasuries declined two basis points to 4.26%

Germany’s 10-year yield was little changed at 2.83%

Britain’s 10-year yield declined one basis point to 4.65%

Commodities

West Texas Intermediate crude rose 1.8% to $67.57 a barrel

Spot gold rose 0.1% to $2,916.04 an ounce

This story was produced with the assistance of Bloomberg Automation.

–With assistance from Alexandra Semenova and Sujata Rao.

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