Global Stocks Plunge Amid Strong U.S. Jobs Data and Rising Dollar

U.S. jobs data exceeded expectations, signaling potential shifts in Federal Reserve rate cuts, causing global stocks to tumble and the dollar to soar. Treasury yields remained high, while commodities experienced mixed results amid inflation concerns. The market awaits decisive monthly inflation data.

On Monday, global stocks nosedived and the dollar soared to its highest level in over two years. This came following Friday's robust U.S. jobs report, which added 256,000 workers to nonfarm payrolls, surpassing expectations. The report heightened concerns about future Federal Reserve rate cuts.

Despite ongoing pressure in the U.S. Treasury market, yields remained near recent peaks. The jobs data fueled worries over inflation, compounded by policy expectations from the incoming Trump administration. Wall Street followed European stocks lower, with technology and financial sectors leading declines.

The market is bracing for Wednesday's monthly inflation data, which could influence the Federal Reserve's monetary policies. In the commodities market, energy prices surged, while gold prices declined amid a stronger dollar and high yields. Investors remain cautious, navigating an environment of elevated economic uncertainty.

(With inputs from agencies.)