Global Markets Tumble Amid Weak Jobs Data and Tariff Turmoil
Global equity markets experienced significant declines following weaker than expected U.S. jobs data, raising anticipation for Federal Reserve rate cuts. Concurrently, President Trump's new tariff announcements exacerbated the economic outlook, causing further disruptions in currency, oil, and gold markets as investors reevaluate economic stability.
In a tumultuous trading session, global markets plummeted on Friday after the U.S. jobs data came in weaker than expected, setting off concerns about the Federal Reserve making potential rate cuts in September. Investors are grappling with the fallout from President Trump's recent tariff announcements, which have rattled market confidence.
The U.S. economy added only 73,000 nonfarm payrolls last month, far below the anticipated 110,000. This disappointing figure, coupled with a rise in unemployment to 4.2% and declines in major indices like the Dow Jones and S&P 500, suggests growing investor anxiety over economic stability.
Adding fuel to the fire, Trump unveiled tariffs on several trading partners, intensifying fears of a trade war. As a result, the U.S. dollar weakened against major currencies, Treasury yields fell sharply, and gold prices surged as investors flocked to safer assets amid the uncertainties.
(With inputs from agencies.)
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