Global Markets Tumble as US Jobs Data Fails to Clarify Fed Rate Outlook; Tech Stocks Lead Sell-Off
Global stock markets fell sharply after mixed U.S. jobs data failed to offer clarity on the Federal Reserve’s next interest rate move. Tech stocks led the sell-off as investor uncertainty pushed major indices lower.
Global markets slumped as mixed U.S. employment data fueled uncertainty over Federal Reserve interest rate decisions, triggering a tech-led market sell-off.
The Friday slide of Asian stock markets was drastic, which added to the global selling wave after the U. S. employment statistics revealed a mixed picture regarding the future monetary policy of the Federal Reserve. The tech sector, particularly Nvidia, suffered despite the strong quarterly earnings, as investors completely disregarded risk.
Wall Street suffered steep losses overnight, with the Nasdaq recording its sharpest single-day swing since April.
US Jobs Data Adds to Market Confusion
The U.S. added far more jobs than expected in September, but a rise in unemployment and downward revisions to earlier figures left investors uncertain about whether the Fed will cut interest rates in December.
Futures now reflect a 40% probability of a rate cut, up from 30% earlier, though investors remain cautious with the next payroll data due after the December Fed meeting.
Treasury yields slipped, with the 10-year holding near 4.09%.
Asian Markets Deep in Red
MSCI’s Asia-Pacific index outside Japan dropped 1.8%, extending losses to 3% for the week—its worst performance since April.
Major regional markets followed suit:
Market Performance
- Japan Nikkei -1.8% (down 2.8% weekly)
- South Korea KOSPI -3%
- Taiwan Weighted Index -2.7%
- China CSI300 -1.1%
- Hong Kong Hang Seng -1.7%
- Analysts said optimism from Nvidia’s earnings and early U.S. data quickly faded.
“The momentum just wasn’t there,” said Kyle Rodda, Senior Analyst at Capital.com. “Even positive news wasn’t enough to reverse the bearish sentiment.”
Fed Cautions on Inflation and Asset Risks
Federal Reserve officials signaled continued caution. Cleveland Fed President Beth Hammack warned that easing rates too quickly could pose risks, while Fed Governor Lisa Cook noted a rising threat of sharp asset price corrections.
Currencies and Commodities React
The U.S. dollar climbed to new highs against commodity-linked currencies and strengthened against the yen, though remarks from Japanese Finance Minister Satsuki Katayama briefly steadied the currency.
The yen traded around 157.40 per dollar, near its weakest level in 10 months, amid expectations of a ¥20 trillion economic stimulus package and possible future rate hikes.
Oil and Gold Edge Lower
Oil prices extended declines:
- WTI Crude: ↓ 1% to $58.38
- Down nearly 3% this week
- Gold slipped 0.2% to $4,069/oz, showing little reaction to market volatility.
Outlook
Analysts anticipate a rough ride for the markets until the Federal Reserve makes a clear policy decision; this is mainly due to inflation worries being still there and the lack of trust among investors getting worse.
