US equities tumbled Friday, led by a 4.2% collapse in the Nasdaq, after a stronger‑than‑expected payrolls report raised the prospect of interest rates staying higher for longer — or even rising further — denting risk appetite across markets.
Geopolitical risk intensified as Iran and Israel exchanged missile strikes amid faltering peace talks. President Donald Trump reportedly urged Israel not to retaliate after Tehran said its attacks were in response to strikes on Beirut — strikes that Trump had specifically asked Israel to avoid.
The rout rippled globally. European stocks fell about 0.5%, while losses were steeper in Asia — markets that were closed when the US jobs data hit — with Japan and mainland China off just over 2% and Hong Kong down about 1%. US futures pointed to a marginally firmer open. Brent crude rose roughly 3% to $96 a barrel on renewed Middle East tensions.
In corporate news, Italy’s Intesa Sanpaolo submitted a €30.6 billion bid for Monte dei Paschi di Siena, a blockbuster move in European banking consolidation. Tencent is lining up a dual‑currency bond raise of about $3 billion in dollars and yuan as Chinese issuers tap international markets.
Macro data showed resilience in parts of Asia: Japan’s economy expanded at a 1.8% annualized pace in early 1Q26, underscoring underlying momentum despite the regional shock from the Iran conflict.
Investors will be watching central‑bank rhetoric and further geopolitical developments for clues on the durability of the sell‑off and the outlook for policy and risk assets.
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