Global Markets Rally on Robust U.S. Jobs Data Amid Middle East Tensions

Global equities rose on a strong U.S. labor report, while oil prices surged due to Middle East tensions. Despite geopolitical risks, U.S. markets hit record highs, fueled by optimism over economic growth. The dollar strengthened as rate cut expectations shifted following the jobs data.

Global equity markets surged on Friday following an unexpectedly strong U.S. labor market report. Investors welcomed the news of an additional 254,000 jobs being added, driving the MSCI's global equity index higher and sending the dollar to its highest level since mid-August.

While concerns loomed over potential military conflicts following Iran's missile strike at Israel, oil prices saw significant weekly gains, moderated somewhat by President Joe Biden's call for restraint. Wall Street celebrated record highs across its major indices, reflecting optimism regarding economic growth despite a hawkish monetary outlook.

The dollar's climb was attributed to diminished expectations of a major Federal Reserve rate cut after the jobs report. Meanwhile, port operations in the U.S. resumed, providing a further boost to the economic outlook, though challenges in clearing cargo backlogs persist.

(With inputs from agencies.)