Weak Jobs Report Sparks Market Fears of Fed Policy Error

A disappointing jobs report heightened concerns that the Federal Reserve`s decision to maintain high interest rates could lead to a significant economic downturn. This fear triggered a global market selloff, with investors moving away from riskier assets like stocks, particularly in the technology sector. Conversely, bonds rallied as traders anticipate the Fed will need to lower rates more aggressively in 2024. While the Fed has successfully curbed inflation, the recent jobs data suggests their policies might be excessively cooling the labor market. Experts are divided on the Fed`s next move, with some calling for more aggressive rate cuts while others believe the Fed will maintain its current course. Overall, market sentiment is fragile, with investors concerned about the Fed`s ability to achieve a soft economic landing.