The U.S. Nonfarm Payrolls (NFP) report for October 2026 shocked markets with a much stronger-than-expected reading, sparking a wave of volatility across global financial markets. The economy added 165,000 jobs, far exceeding the forecasted range of 59,000-65,000, while September’s figures were revised upward from 29,000 to 60,000. The unemployment rate also dropped to 4.1%, reinforcing the narrative of a resilient U.S. economy. This data pushed the probability of a Federal Reserve rate hike in December to roughly 70%, leading to a firmer U.S. dollar, higher Treasury yields, and a broad selloff in risk assets.
U.S. equities faced steep declines, with the S&P 500 closing down 4.4% at 7,353.73. The Nasdaq Composite and Nasdaq 100 plunged around 5.5%, erasing between $2.3 trillion and $2.5 trillion in market value and entering correction territory. The Dow Jones Industrial Average fell 3.4%, losing 1,833 points to close near 51,523. The selloff extended beyond tech, impacting industrials, financials, and consumer sectors as investors reassessed the sustainability of AI-related capital expenditure amid higher financing costs.
Asian markets mirrored the U.S. turmoil, with Japan’s Nikkei 225 plunging 5.96% to 57,434.77, entering bear-market territory. South Korea’s Kospi collapsed 6%, 8%, triggering circuit breakers, while Taiwan’s Taiex fell 4.51%. Hong Kong’s Hang Seng and Shanghai Composite also declined. The only exception was India’s Sensex and Nifty 50, which gained over 2% as investors rotated into Indian equities amid global AI-tech de-risking.
Gold prices pulled back modestly, consolidating between $4,050 and $4,072, down roughly 0.8%, 1.1% from recent highs above $4,100. The decline was driven by a firmer U.S. dollar and higher Treasury yields, reducing safe-haven flows. Meanwhile, Bitcoin slid toward $74,888, down from highs above $80,000, as macro liquidity tightening and risk-off positioning weighed on the cryptocurrency. The $75K zone has become a battleground between leveraged sellers and long-term holders, with the outlook hinging on whether markets stabilize or further selloffs occur.