Global Markets React to Strong U.S. Job Data and Inflation Concerns

Better-than-expected U.S. employment figures dampen hopes for Federal Reserve rate cuts, pressuring stock markets worldwide.

U.S. job growth in December significantly exceeded expectations, with 256,000 jobs added compared to the forecasted 155,000.
The U.S. unemployment rate fell to 4.1%, further reducing the likelihood of imminent Federal Reserve interest rate cuts.
Major U.S. stock indices, including the Dow Jones and Nasdaq, saw sharp declines, with the Nasdaq dropping by 2% during Friday trading.
European markets, including the DAX, also faced losses, though Germany's DAX showed relative resilience with a 0.5% decline to 20,214.79 points.
Rising bond yields and inflation concerns contributed to market volatility, with U.S. Treasury yields hitting their highest levels since 2023.