The global financial markets experienced a turbulent night as major US indices saw a sharp decline. The Dow Jones fell by 1.35% to 38,596.98, the S&P 500 decreased by 1.23% to 5,147.21, and the Nasdaq Composite slid by 1.4% to 16,049.08 points.
The technology sector within the S&P 500 took a hit with a notable 1.7% decline, while defense-related companies like Lockheed Martin saw gains. Asian markets also followed suit with Tokyo’s Nikkei 225 and Hong Kong’s Hang Seng Index recording losses due to a stronger yen and anticipation of the US nonfarm payrolls report.
Oil prices, on the other hand, rose for the second consecutive week driven by geopolitical tensions in Europe and the Middle East, tightening supply concerns, and optimism about global fuel demand growth. Brent crude and US West Texas Intermediate crude reached their highest levels since October.
In other news, Bank of Japan Governor Kazuo Ueda hinted at a possible rate hike if the yen’s decline significantly affects inflation and wages. Samsung Electronics also anticipates a substantial increase in first-quarter operating profit due to a robust recovery in memory chip prices.
Market attention is now focused on the upcoming US employment data, which is expected to provide insights into the labor market and inflation. Experts predict a decrease in nonfarm payrolls for March, dropping to 200,000 from the previous month’s figure of 275,000, while the unemployment rate is expected to remain stable at 3.9%.
Additionally, key releases include the UK house price index and S&P Global’s UK construction sector Purchasing Managers’ Index, indicating a mixed outlook for the global economy.