Global Stock Markets in Free Fall as US Jobs Growth Disappoints
A global sell-off in stock markets intensified on Friday as disappointing US jobs growth data fueled concerns about a slowdown in the world’s largest economy, Excel Magazine International reports.
The tech-heavy Nasdaq index led the decline, plummeting over 3% after Intel and Amazon reported dismal results.
According to official data, US employers added a mere 114,000 jobs in July, far below expectations.
This suggests that the prolonged jobs boom in the US may be coming to an end, sparking speculation about the timing and magnitude of interest rate cuts by the Federal Reserve.
Global markets were already on edge after US data revealed weaker manufacturing activity on Thursday.
The Dow Jones Industrial Average and S&P 500 followed the Nasdaq in its decline, while markets in Asia and Europe also suffered significant losses.
Japan’s Nikkei 225 index plummeted nearly 6% to close the day.
The Federal Reserve’s decision to hold interest rates earlier this week, coupled with indications of a likely rate cut in September, has heightened uncertainty among investors. As fears of an economic slowdown grow, the question on everyone’s mind is: what’s next for the global economy?
