Stock markets plunge as weak US jobs fuel fears
Global stock prices fell on Friday as weak US jobs growth fueled fears of an unexpected slowdown in the world's largest economy.
Technology heavyweight Nasdaq fell more than 2.4%, led by Intel and Amazon, after the company reported disappointing results.
Official data showed that employers added 114,000 jobs in July, well below expectations, when the unemployment rate rose to its highest level in almost three years.
The figure suggested that America's long-term jobs may be coming to an end and fueled speculation about when and how much the Federal Reserve would cut interest rates.
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stock markets are worried about high mortgage rates, and signs that the long-term inflationary expectations that artificial intelligence (AI) may be coming to an end are not slowing down.
Nasdaq's decline on Friday was 10% off the highest level - a decline called "correction" - and this event has been seen in weeks.
The Dow Jones Industrial Average also gained 1.5% on Friday, and the S&P 500 closed up 1.8% as markets in Asia and Europe fell.
in Japan, the Nikkei 225 index fell almost 6%.
At the beginning of the week, the Federal Reserve is holding interest rates again, but it has indicated that it is likely to reduce interest rates at its next meeting in September.
"The question now is not if [the Federal Reserve] will cut in September, but how much," said Jay Woods, head of global strategy at Freedom Capital Markets.
Seema Shah, chief global strategist and chief asset manager, said the latest job numbers raise questions about whether the Fed is waiting too long.
"Job growth fell below the 150,000 level consistent with a strong economy," he said.
"September rate cuts are in the bag, and the Fed is expected to be in no rush to do anything else." The unemployment rate reached 4.3%, the highest since 2021 and from 3.5% a year ago, according to the report of the Department of Labor on Friday. wage increases decreased, average hourly wages increased by 3.6% over the past 12 months.
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