Market Jolt: Weak Economic Data Sparks Tech Stocks Selloff

Global equities tumbled and U.S. Treasury yields hit multi-month lows amid economic concerns and downbeat forecasts from Amazon and Intel. The Nasdaq Composite fell 2.8%, triggering correction territory fears. Weak employment data exacerbated worries about a potential recession, leading to significant market volatility and discussions around a potential Federal Reserve rate cut in September.

Global equities dropped sharply on Friday, and U.S. Treasury yields reached multi-month lows driven by economic concerns and pessimistic forecasts from Amazon and Intel. This led to a significant decline in richly-valued tech firms.

The Nasdaq Composite index fell by 2.8%, pushing it towards correction territory amid concerns about high valuations of big tech companies and weak employment data that heightened fears of an economic slowdown. Michael Farr, CEO of Farr, Miller & Washington LLC, highlighted that the market's reaction is driven by short-term fear, noting that the Federal Reserve's high rates might be slowing the economy.

Financial experts pointed out the significant move in the 10-year Treasury yield and the market's apprehension towards a sharper-than-expected economic deceleration. The soft economic data, coupled with geopolitical concerns in the Middle East, contributed to the lower bond yields. Many analysts, including Steve Englander from Standard Chartered Bank, voiced concerns about the slowing U.S. economy and the potential need for the Fed to cut rates in September.

(With inputs from agencies.)