#MarketSentimentWatch

Wall Street wants to know if DOGE-led job cuts will tip U.S. into recession

The No. 1 question from clients of Apollo Global Management is whether DOGE-related firings and jobs cuts can create an economic downturn, said chief economist Torsten Slok.

Government-related job cuts by the White House and its “Department of Government Efficiency” haven’t been big enough to show up in the data yet, but fears are growing that they could soon lead to a surge in jobless claims and undermine the strength of the labor market.

Data released on Thursday showed that initial jobless claims barely rose from already low levels over the seven-day period that ended on Feb. 15, inching up by 5,000 to 219,000. While jobless claims have remained historically low, some economists and market participants warn that federal employees who have been let go will likely begin filing claims over the months to come.