US Stock Markets Rise After Days of Turmoil

• US shares opened higher on Tuesday as an uneasy calm returned to global markets after days of sharp falls. The Nasdaq closed 1% higher, the S&P 500 rose by 1%, and the Dow Jones was 0.8% higher. London's FTSE 100 closed 0.2% higher, while Germany's Dax ended flat, and France's Cac 40 lost 0.3%. Markets in South Korea and Taiwan regained ground, rising around 3.5% after record falls.
• Stock markets were hit by a global sell-off on Friday as weak US jobs growth stoked fears of a downturn in the world's largest economy. Official data showed employers added 114,000 jobs in July, far fewer than expected, while the unemployment rate rose to 4.3%, the highest in nearly three years. The figures suggested the long-running US jobs boom might be ending, driving speculation about when and by how much the Federal Reserve will cut interest rates. High borrowing costs and signs of a waning AI-fueled rally also worried markets.
• Friday's decline brought the Nasdaq down about 10% from its recent peak. The Dow Jones dropped 1.5%, and the S&P 500 ended 1.8% lower, following declines in Asia and Europe. Japan's Nikkei 225 index tumbled nearly 6%. The Federal Reserve held interest rates but signaled likely cuts in September.
• Recession fears have renewed calls for the Federal Reserve to cut interest rates in September. Last week, the Fed held rates at 5.25%-5.5%, the highest in two decades, while other central banks cut rates. Some experts believe this was a mistake, likely causing continued market volatility. "Markets are very volatile and will likely stay so until the Fed decision in September," said Stefan Angrick of Moody's Analytics. Seema Shah of Principal Asset Management questioned if the Fed had waited too long, noting job gains had dropped below the 150,000 threshold for a solid economy.
• The market turmoil occurred amid a heated US presidential campaign, intensifying political debate over the Fed's actions. President Joe Biden said the economy was still making progress, with the US economy expanding at an annual rate of 2.8% this spring. Analysts noted the unemployment rate rise was driven by more people looking for work, not a surge in job losses.

(Source: BBC News)