Global Stock Markets Decline Over US Economic Fears

Global stock markets experienced a significant selloff on Friday due to rising fears of a potential U.S. economic slowdown, exacerbated by disappointing earnings from major tech firms like Intel and Amazon. The Nikkei 225 index in Japan fell 5.8%, its steepest drop since 2020, leading to a broader decline across Asian and European markets, with the Topix index down 6.1%. Investors are increasingly concerned that the Federal Reserve has delayed necessary interest rate cuts, which could hinder economic recovery, especially after data revealed a drop in U.S. manufacturing and a rise in unemployment claims. Futures for the S&P 500 and Nasdaq 100 indicated further declines, reflecting a lack of confidence in the tech sector's performance. Anticipation of a weaker jobs report added to the market's anxiety, prompting investors to seek safety in U.S. Treasuries, which saw yields drop sharply. The overall sentiment indicates a growing worry about the potential for a hard landing in the U.S. economy, impacting global markets significantly.