Volatile Week Ahead for U.S. Markets
The week kicked off with a familiar headline, “tariffs.” A federal appeals court ruled that many of President Trump’s “reciprocal” tariffs were not legally his to impose, but they’re still in place for now while the case heads to the Supreme Court.
Even if the Court strikes them down, Trump could still bring them back under a different authority, but the process would be slower and capped at lower rates.
This uncertainty is keeping businesses, traders, and everyday investors on edge. Global trade has been shaky for months, and this legal drama only adds more fuel to the fire. The market hates uncertainty, and right now, there’s plenty of it to go around.
Job Market Sends a Warning Sign
The labour market isn’t offering much comfort, either. After a disappointing July with just 73,000 jobs added and big downward revisions to the previous two months, expectations for August are modest, around 60,000 to 70,000 new jobs.
Economists like Amy Glaser from Adecco point out that companies are still hiring but are more cautious, taking longer to lock in candidates. It’s like everyone’s moving, but in slow motion.
This caution is feeding fears of a broader economic slowdown, especially since GDP growth, while solid at 3.3% in Q2, is expected to cool down through the rest of 2025 and into 2026.
What This Means for the Fed and You
All eyes are now on the Federal Reserve. Chair Jerome Powell has acknowledged the softening job market, which makes a small interest rate cut this month more likely. But not everyone is convinced.
As economist Richard Potts puts it, “It would be naive to consider a September cut a done deal.”
Inflation is still sitting above the Fed’s 2% target, and political pressure is mounting with Trump reshuffling Fed members in hopes of securing rate cuts.
That mix, high inflation, slowing growth, and political noise, is making the market jumpy, and you can expect continued volatility in the dollar and equities as policymakers try to make sense of the numbers.
Between tariffs, job market jitters, and Fed uncertainty, September could set the tone for how the economy moves into 2026. For everyday investors, this is a moment to stay informed and cautious rather than reactive, because if recent months have shown anything, it’s that surprises are the only thing we can count on.
