Global Markets Tumble Amid Weak US Jobs Data and Tariff Woes
The global stock market fell sharply following weaker-than-expected U.S. jobs data, leading to increased expectations for Federal Reserve rate cuts. President Trump's latest tariff announcements added to market concerns, causing a sell-off. Key indices dropped substantially, and the dollar weakened amid economic uncertainty.
In a dramatic turn on Friday, the global equities index, as measured by MSCI, saw a significant sell-off. This market volatility followed the release of disappointing U.S. jobs data, which has heightened expectations for Federal Reserve rate cuts in September. The news reportedly sent tremors through the dollar, which took a notable dive.
Adding to the financial turmoil were U.S. President Donald Trump's recent tariff announcements, which were met with strong reactions from investors. The Labor Department's latest figures showed an employment growth of only 73,000 nonfarm payrolls, markedly less than the anticipated 110,000. Consequently, unemployment rose to 4.2% in July, intensifying recession fears.
Financial markets reacted swiftly, with major indices like the Dow Jones and S&P 500 experiencing steep declines. The probability of a Federal Reserve rate cut surged, reflecting growing investor anxiety. In tandem, commodities such as oil plummeted, while gold prices rallied, fueled by policy easing expectations and increased demand for safe-haven assets.
(With inputs from agencies.)
Google News