Despite strong US jobs data, investors fretted about inflation and concerns about slowing growth, sending global stocks tumbling on Friday.

According to the Labor Department, the US economy added 428,000 jobs in April, above expectations, and the unemployment rate remained at a low 3.6 percent.

The report showed sustained solid job growth and hinted that some inflationary pressures may be receding, with wages rising at a slower pace than in March.

However, investors are concerned that increasing costs and interest rates would hurt consumers, limiting the economy’s growth in the second half of 2022.

“There is a real concern about slowing growth and the possibility that the economy could tip into recession,” said Briefing.com analyst Patrick O’Hare.

Wall Street stocks flirted with the positive territory at times, but finished lower, with the S&P 500 dropping 0.6 percent.

All three US indices ended with weekly losses, with the Nasdaq suffering the most at 1.5 percent.

Earlier, European indices also slumped, with London losing 1.5 percent, Frankfurt 1.6 percent, and Paris 1.7 percent.

“A sinking feeling has taken over financial markets at the end of a volatile week,” said Hargreaves Lansdown analyst Susannah Streeter.

“Investors are digesting the unpalatable implications of inflation and fretting that there will be a need for a bigger dose of the bitter medicine being administered to try and bring it under control.”

Following sharp Wall Street losses on Thursday, Asian stocks fell as speculators anticipated a period of aggressive monetary tightening by the US Federal Reserve.

Meanwhile, the pound fell to $1.2276, a two-year low, one day after the Bank of England warned that UK inflation would exceed 10% and the economy would decline later this year.

The euro surged to 85.92 pence, its highest level since late 2021.

Crude prices rose as major producers, led by Saudi Arabia and Russia, declined to increase output above their planned marginal rise, citing constrained supply fears resulting from Moscow’s invasion of Ukraine.

Oil prices have also benefited from a possible European Union ban on Russian petroleum following the invasion of Ukraine.

“If EU efforts to ban Russian crude and products are able to continue moving forward, it would mark the most significant measure directly targeting Russian energy exports amid a wave of sanctions,” said a note from Robbie Fraser of Schneider Electric.

“Replacing Russian crude volumes is a significant logistical challenge.”

– Key figures at around 2050 GMT –
New York – Dow: DOWN 0.3 percent at 32,899.37 (close)

New York – S&P 500: DOWN 0.6 percent at 4,123.34 (close)

New York – Nasdaq: DOWN 1.4 percent at 12,144.66 (close)

London – FTSE 100: DOWN 1.5 percent at 7,387.94 (close)

Frankfurt – DAX: DOWN 1.6 percent at 13,674.29 (close)

Paris – CAC 40: DOWN 1.7 percent at 6,258.36 (close)

EURO STOXX 50: DOWN 1.8 percent at 3,629.17 (close)

Hong Kong – Hang Seng Index: DOWN 3.8 percent at 20,001.96 (close)

Shanghai – Composite: DOWN 2.2 percent at 3,001.56 (close)

Tokyo – Nikkei 225: UP 0.7 percent at 27,003.56 (close)

Brent North Sea crude: UP 1.3 percent at $112.39 per barrel

West Texas Intermediate: UP 1.4 percent at $109.77 per barrel

Euro/dollar: UP at $1.0556 from $1.0542 on Thursday

Pound/dollar: DOWN at $1.2339 from $1.2362

Euro/pound: UP at 85.52 pence from 85.28 pence

Dollar/yen: UP at 130.56 yen from 130.20 yen