Global Markets Reel as U.S. Jobs Report Fuels Economic Slowdown Fears

Europe's STOXX 600 fell nearly 3% due to turbulence in global equity markets following a concerning U.S. jobs report. Significant declines in financial and technology sectors were observed, with banks and technology firms being the worst affected. Investors worry about a potential economic recession.

Europe's STOXX 600 tumbled close to 3% on Friday, reflecting turbulence across global equity markets. This plunge came on the heels of a U.S. jobs report that exacerbated fears of an economic slowdown in the world's largest economy, hitting financials and tech sectors the hardest.

The pan-European STOXX 600 index declined 2.7% to 497.85 points, marking a three-month low. Most European sub-indexes traded in the red, with the technology sector plummeting 6.1%—its steepest one-day drop since October 2020, mirroring a sell-off on Wall Street.

Data revealing a spike in the U.S. unemployment rate to a near three-year high of 4.3% in July, amid hiring slowdowns, rattled global equity markets. Concerns over potential economic recession were amplified. 'This was a bad news report for the market and will continue the growth scare that has been roiling equities lately,' said Lara Castleton, U.S. head of portfolio construction and strategy at Janus Henderson Investors.

(With inputs from agencies.)