World stock markets endured a day of chaos as dismal US employment figures—unexpectedly showing the weakest hiring in almost two years—triggered a sudden selloff from New York to Mumbai. The S&P 500 dropped 2.5% in early trading, while India’s Sensex closed 600 points lower, echoing a wave of red across European and Asian markets.

What’s Driving the Fear?

Analysts point to rising inflation, persistent interest rate hikes, and the ripple effects of recent mass layoffs in the technology sector for spooking investors who had hoped for a smoother global recovery.

Indian equity strategists warn that ongoing foreign fund outflows and concerns about demand in exports and IT will keep volatility high. Meanwhile, blue-chips like Reliance and Infosys have led the downturn, with banks also feeling heat from worries about loan quality.

“It’s a reality check after an optimistic October. We’re entering a more difficult winter for jobs and profits,” says London fund manager Clara Zhou.

With central banks showing no signs of immediate rate cuts, market watchers expect continued turbulence as results season rolls on and further global data is released.