Global Stocks Plunge Amid Jobs Report Weakness and Tech Sell-off

Global stock markets experienced a sharp decline on Friday, with tech firms being notably affected. The slump followed weaker-than-expected U.S. job reports and mixed earnings from Amazon and Intel. Investors sought safer assets like government bonds, leading to a significant drop in bond yields and a rise in gold prices.

Global stocks took a significant hit on Friday, particularly impacting tech firms, as a U.S. jobs report indicating unexpected economic weakness unsettled markets already shaken by downbeat earnings from Amazon and Intel. The decline started in Asia and rippled through Europe, expected to impact Wall Street heavily.

MSCI's global stock gauge fell 0.8%, while European shares dropped 2%. Volatility surged with the VIX index reaching its highest level since April. Meanwhile, U.S. job growth showed a notable decline, with non-farm payrolls adding just 114,000 positions in July, down from 179,000 in June.

Futures trading suggested a sharp drop for major U.S. indices, with the S&P 500 expected to fall 1.8% and the Nasdaq 100 potentially entering correction territory. Analysts speculated that the Federal Reserve's tight monetary policy might have gone too far, raising the risk of a recession.