Stocks Plummet on Weak Job Data

LONDON — European stocks continued their downward trend on Friday, reflecting a broader global market slump triggered by disappointing U.S. economic data that raised recession fears. The index fell below the 500-point mark for the first time since April, with nearly all sectors, particularly technology, suffering significant losses. U.S. tech giant Intel saw its shares plummet by as much as 28% following a substantial earnings miss, contributing to a 5.22% decline in financial services and a 4.35% drop in bank stocks. The downturn in global markets has been exacerbated by recent central bank actions, including the Bank of England's first interest rate cut since 2020. BOE Governor Andrew Bailey indicated that while the direction for interest rates is clear, further cuts' timing remains uncertain, with a focus on inflation and wage data. Market expectations suggest a hold on rates in September, followed by potential cuts in November. In the U.S., stock markets also experienced sharp declines as concerns about the economy intensified. A weaker-than-expected jobs report for July revealed a slowdown in job growth and an increase in the unemployment rate, further fueling recession worries. The S&P 500 and Nasdaq Composite fell by 1.84% and 2.43%, respectively, with notable declines in major companies like Chevron and Intel. Despite the overall market turmoil, some stocks, such as Sun Country, saw modest gains due to strategic partnerships, highlighting the mixed performance within the aviation sector. As traders reassess the Federal Reserve's future rate decisions, the outlook for the remainder of the year remains uncertain.