Data on Friday showed U.S. job growth picked up in February, but cracks are emerging in the once-resilient labor market amid chaotic trade policy and federal government spending cuts.
The market's focus will also be on Washington, as lawmakers wrangle over a spending bill that would avert a partial shutdown of agencies late next week. Trade policy remains in the spotlight. Tariffs on foreign imports are expected to hurt corporate profits and increase consumer prices, but investors are weighing how lasting the levies will be against their potential as negotiating tools. Trump on Thursday said Mexico and Canada won't be required to pay tariffs on goods that fall under a prior trade deal until April 2.
Under the new Trump administration, the barrage of initiatives on trade and other issues, such as federal workforce cuts, has fed uncertainty for businesses and consumers.