Global Market Turmoil and Causes

Global stock markets experienced one of the worst sell-offs in recent history, reminiscent of the 2008 financial crisis. The Tokyo stock index fell over 12%, prompting emergency trading halts, while major U.S. indexes also saw declines exceeding 2.5%. Contributing factors included Japan's raising of interest rates, which spooked investors ready to liquidate in anticipation of further volatility, and disheartening labor market data revealing slower job growth and increasing unemployment. Additionally, the influence of automated trading algorithms exacerbated the situation, leading to a cascading effect of sell-offs as stock prices breached critical technical levels.