Global stock markets plummeted amid growing concerns of a US economic downturn, sparked by underwhelming job data and a surging yen. The Nikkei 225 in Japan suffered a historic collapse, while major indices worldwide, including the FTSE 100 and Euronext 100 in Europe, experienced sharp losses. The selloff was intensified by worries over elevated borrowing costs, lackluster corporate earnings from giants like Amazon and Intel, and the US Federal Reserve’s decision to maintain interest rates.
The Bank of Japan’s interest rate hike strengthened the yen, making Japanese stocks less attractive to foreign investors and exacerbating the market downturn. The broader market unease also impacted cryptocurrencies like Bitcoin, which saw significant declines. The global market slump reflects deepening fears of a US economic slowdown, with investors seeking safe-haven assets amidst the uncertainty.
