Europe stocks close 2.8% lower, extending losses after weaker-than-expected U.S. jobs report

LONDON — European stocks extended losses on Friday amid a global downturn, as weak U.S. economic data sparked fears of a recession.

The regional Stoxx 600 index provisionally closed 2.82% lower, its worst day since December 2022 according to LSEG data. The index also fell below the 500 point mark for the first time since April, LSEG data showed.

All major bourses and almost all sectors were in the red, with tech stocks closing nearly 6% lower.U.S. giant Intel fell as much as 28% in morning trading after reporting a big earnings miss.

Financial services were down another 5.22% Friday, as banks fell 4.35%.

Global markets have been pulled lower by a flurry of central bank action — with the Bank of England cutting interest rates for the first time since 2020 on Thursday, the U.S. Federal Reserve holding rates and the Bank of Japan raising them this week — along with shaky corporate earnings and data releases.

The Thursday decision took the British central bank's key interest rate from 5.25% to 5%, following a narrow 5-4 vote among policymakers. Markets had not been fully convinced that the BOE would take the step.

BOE Governor Andrew Bailey told CNBC that the direction for interest rates was "pretty clear," but he would not comment on the extent or timing of further cuts and said services inflation and wage data would be watched closely. Market pricing suggests expectations for a rate hold in September, followed by another rate trim in November.

U.S. stock markets tumbled on Friday, as jitters grew around the state of the economy and recessionary concerns grew.

U.S. job growth slowed more than expected in July, the U.S. Bureau of Labor Statistics' latest nonfarm payrolls report showed Friday, while the unemployment rate unexpectedly