Dow Jones Leaps 200 Points: Jobs Data Trumps Trade War Jitters

Wall Street shrugs off geopolitical tension as employment numbers steal the spotlight—because nothing fuels bullish delusions like a hot labor market.

Traders pile into risk assets as economic fundamentals temporarily override tariff tantrums. Classic case of ’good news is good news’—until the Fed ruins the party.

Bonus cynicism: Watch how fast these gains vanish when the next overleveraged hedge fund blows up chasing yield.

OECD warns about tariffs effects

Earlier on Tuesday, the OECD lowered its outlook on global growth, citing the effects of U.S. tariffs. According to the Organization for Economic Cooperation and Development, the global economy will grow by 2.9%, lower than the 3.3% last year.

The slowdown will impact the U.S., Canada, Mexico and China in particular, OECD expects. These are the countries most economically tied to U.S., and its major trading partners. At the same time, China is expected to suffer particularly under U.S. tariffs.

The U.S. economy is projected to grow just 1.6% in 2025, compared to 2.8% in 2024. At the same time, the organization warned about the inflationary effects of the tariffs. However, global inflation is expected to drop from last year, from 6.2% to 3.6% in 2025.

Lower commodity prices, largely a result of a slowdown in global demand, will contribute to lower consumer inflation.