The unemployment rate held at 4.2%, with 7.2 million people unemployed. While sectors such as health care and social assistance posted moderate gains, the broader labor market showed signs of stalling and downward revisions to May and June payrolls erased a combined 258,000 jobs, painting a more cautious picture.

The Federal Reserve won’t cut interest rates until it sees how inflation and job creation respond to higher tariffs. The next big bite of the apple arrives on Friday with the July employment report. Here’s what to expect.