In a striking turn of economic events, stock traders are now showing a marked skepticism towards employment and inflation data released by the Trump administration. This shift comes amid accusations that the administration has manipulated these figures to present a more favorable economic outlook.

Under President Donald Trump's leadership, particularly during his second term, there has been a notable attack on economic data that does not align with his narrative. Trump has openly criticized Federal Reserve officials and has even made moves to dismiss members like Lisa Cook for what he deems unfavorable economic assessments. Moreover, his threats to indict Fed Chair Jerome Powell over alleged extravagant spending on building renovations have raised eyebrows about the administration's interference in economic matters.

The Bureau of Labor Statistics (BLS), which was purged by Trump in 2025 allegedly due to their frequent large revisions of employment data, has been under pressure to produce data that pleases the administration. This manipulation has led to growing concerns over the reliability of official economic figures released by the government.

Despite the January jobs report from the BLS stating that nonfarm payrolls had surged by 130,000, doubling the consensus estimate of 55,000, the stock market reacted indifferently. The S&P 500, Dow Jones Industrial Average, and Nasdaq composite all closed slightly lower on February 11, the day the report was released.

Similarly, when the BLS reported that annual inflation had cooled to 2.4% in January, below the previous 2.7% and under economists' expectations, the stock market's response was lukewarm at best. The S&P 500 and Dow Jones saw minimal gains, while the Nasdaq experienced a slight decline. This tepid reaction contributed to what was the worst week for the stock market so far in 2026.

These market responses suggest a growing distrust among traders toward the economic data being published by the Trump administration. This skepticism appears to be a direct consequence of the administration's previous actions to influence the outputs of its statistical agencies to cast the economic situation in a more positive light than it might actually be.

The situation underscores a critical challenge facing the financial markets — discerning true economic indicators from politically influenced data. As the stock market continues to react with caution, it becomes increasingly clear that traders are relying more on verifiable data and less on potentially skewed figures from the Trump administration. This trend signals a crucial shift in how economic data is received and acted upon in the financial world, emphasizing the need for transparency and integrity in government statistical reporting.