ASX futures fell 51 points, or 0.7 per cent, to 7107 at the close of trade of Saturday, indicating a lower start to trading on Friday’s record losses.

On Friday the S&P 500 dropped 0.6%, bringing its losing streak to a fifth straight week, its longest stretch of losses since June 2011. The tech-heavy Nasdaq Composite fell 1.4%. The Dow Jones Industrial Average fell 0.3 percent, after plunging more than 1,000 points Thursday, its worst day since 2020.

All three major indexes posted small weekly losses. The S&P 500 and Dow lost 0.2% each on the week. The Nasdaq lost 1.5%, its fifth weekly decline of at least 1% the longest such streak since August 2002, according to Dow Jones Market Data.

Stocks surged on Wednesday, after the Federal Reserve lifted interest rates a half of a percentage point, on relief that it wasn’t actively weighing even larger increases down the road, but that buoyancy faded on Thursday and Friday, as investors took a fresh look at the outlook for stocks, resulting in a punishing selloff that surprised many investors.

Volatility persisted early Friday. Futures briefly spiked following the release of a strong April jobs report, then resumed their slide. Other investors said the report was overshadowed by fears about the Fed's path for interest rates.

The robust jobs report “could also mean that the Fed gets to be a little bit more aggressive,” said Amy Kong, chief investment officer at Barrett Asset Management.

At home, the S&P/ASX 200 slumped 2.2% to 7205.6, as the benchmark index recorded its largest weekly loss since October 2020.

Every one of the ASX 200 sectors finished lower to cap a 3.1 per cent fall over the week, the second time in 2022 that the index has lost that percentage over a week.

With US tech stocks smashed, Australia’s tech sector sank 4.6%. All 16 sector components finished in the red. The biggest losers were Life360 and Xero, which were down 9.6% and 9.1%, respectively.

All but 15 ASX 200 components lost ground, with the heavyweight financial and materials sectors both dropping 2.0%.

The ASX 200 has now suffered three straight weekly losses, tied with a January run as the worst of 2022.

Macquarie Group dropped 8.0% to a two-month low of $186.90 after it warned keeping up growth rates would be challenging in the current environment of market volatility and rising interest rates. Yet the diversified financial behemoth posted a record profit for fiscal 2022.

Shares in ASX-listed News Corp fell 7.8 per cent to $26.60, despite the media group reporting that its net income had increased eight per cent to US$104 million in the third quarter.

In commodity markets, gold futures rose 0.4% to $US 1882.80 a barrel while Brent crude oil rose 1.3 per cent to $US112.39 a barrel; iron ore lost 4.7% to US$139 a tonne.

Bonds resumed their selloff. The Australian 2 Year government bond yield rose to 2.72% while the 10 Year bounced to 3.46% Yields on US Treasury 2 Years rose to 2.73%, while the 10 Year jumped to 3.13% overseas.

The Australian dollar slipped to 70.75 US cents, from 71.10 the previous close and last trade on Saturday. The Wall Street Journal Dollar Index, which measures the buck against 16 other currencies, climbed to 96.14.

Asia

Chinese stocks finished lower, with broad declines in regional Asian equities and steep overnight losses on Wall Street. The drop comes after US Treasury yields recovered, which typically pulls capital out of the stock market. The broad, blue-chip Shanghai Composite Index lost 2.2 per cent to close at 3001.56 and the Shenzhen Composite Index shed 1.7 per cent to 1859.39. The ChiNext Price Index fell 1.9% to 2244.97. Tourism-related businesses such as travel agencies and operators of attraction sites, airlines and airports were among the biggest losers, after Beijing signaled its intent to adhere to its zero-Covid policy.

Hong Kong’s stocks ended lower after regional equities markets in Asia closed lower, as well as a downward trend on Wall Street overnight. The benchmark Hang Seng Index slumped 3.8%, its biggest one-day drop in two months, to end at 20001.96. Consumer-goods companies topped the list of losers as concerns about a consumption downturn in China continued to mount after Beijing indicated it was sticking with its zero-Covid policy. China Res Beer dropped 10%, Budweiser Brewing fell 7.6% and Li Ning lost 7.3%.

Japanese shares finished in the green, with energy and power stocks gaining as recently rising crude oil prices raised the prospects for nuclear-reactor restarts. Tokyo Electric Power Co. Holdings surged 16% and Kansai Electric Power rose 5.1%. Oil player Inpex surged 4.9%. The Nikkei Stock Average climbed 0.7% to 27003.56. Earnings are in focus.

Europe

European stocks finished in the red as investors digested the April US nonfarm payrolls report and weighed the implications of monetary tightening by the US Federal Reserve and other central banks. The pan-European Stoxx Europe 600 lost 1.9 percent, while the German DAX declined 1.6 percent and the French CAC 40 retreated 1.7 percent.

“As today's job data shows, the US economy continues to motor on; and while wage growth might have fallen some way short of forecasts, the overall picture remains one that supports the Fed's plans for further tightening of policy,” IG analyst Chris Beauchamp says in a note.

Investors were still burning over whether a recession in the US and other countries brought on by tight monetary policy, he says.

London’s FTSE 100 closed the week down 1.5 percent, and IG said “Earnings season has done little to allay concerns over squeezed consumer spending and the markets once more are on their back foot.”

North America

Stocks finished off a turbulent week with small losses, prolonging a selloff that has pulled the S&P 500 to its longest weekly losing streak in over a decade.

The large indexes have traded in broad range in recent sessions as investors have sought to assess how the Federal Reserve’s plan to increase interest rates will affect the economy. Investors have landed caught between conflicting hopes: that rate hikes will be large enough to bring rapid inflation down but will not be so large as to derail economic growth.

Those concerns, along with surging yields in the government bond market, have pummeled shares of technology and other growth stocks in particular as investors re-evaluate the once highflying group.

The S&P 500 lost 0.6 percent Friday, marking its fifth straight week of losses, its longest streak since 2011. The technology-focused Nasdaq Composite fell 1.4%. The Dow Jones Industrial Average fell 0.3 percent, following a plunge of over 1,000 points Thursday in its worst day since 2020.

And while the effects of climbing rates have hit the stock market over the course of much of the year, the sell-off has taken on new ferocity in recent days. Stocks have experienced some of their biggest single-day tumbles since 2020, adding to their losses since April. That has left investors to wrestle with a prolonged selloff that has been anything but a repeat of the historically brief, brutal stock-market crash of March 2020.

To make matters more painful for many investors: Stocks and bonds have suffered big, matching losses. In the bond markets, the yield on the benchmark 10-year US Treasury note hit 3.124%, a level not seen in November 2018. Bond yields go up when prices go down.

It looked like, at points this week, people were selling everything, said Danny Kirsch, head of options at Piper Sandler. It’s a “go to cash,” mentality, he said. "Nothing's working."

All three of the major indexes posted slight losses for the week, but the tech-heavy Nasdaq continued to lag behind its peers. The S&P 500 and Dow lost 0.2% each on the week. The Nasdaq slid 1.5%, marking its fifth weekly drop of 1% or more the longest such streak since August 2002, according to Dow Jones Market Data.

At times in recent weeks, investors stepped back in, buying stocks at a discount, and helped stabilize the market. The gains have been fleeting, however, and with the indexes still trading near their lows of the year.

The S&P 500 is down 13% in 2022; the Dow has fallen 9.5%; and the Nasdaq is off 22%.

“In some ways investors might have forgotten what corrections felt like,” said Mike Bailey, director of research at FBB Capital Partners. “Some of them might simply want out.”

Stocks surged Wednesday after the Federal Reserve lifted interest rates by half a percentage point, relief-sentiment fueled by the perception that it wasn’t actively flirting with even larger hikes in the future, but that relief turned into rising concern Thursday and Friday as investors grew anxious not about the Fed but about stocks, which suffered a brutal selloff that blindsided many of them.

Some of Nomura’s clients were selling stocks, cats-and-dogs, instead of layering on stock hedges through the derivatives markets, said Matt Rowe, the firm’s executive director of global markets.

“What we have seen is net and gross risk reduction versus hedging,” Mr. Rowe said. “Before you even think about hedging something, do you want to own it in the first place?

More than 95% of the S&P 500’s members fell Thursday, for example, for the third time in three weeks something that hasn’t happened at this pace since March 2020, according to Susquehanna Financial Group.

The turbulence carried into early Friday. Futures briefly climbed after the release of a strong report on April jobs, then resumed that slide. Other investors said the report was overshadowed by concerns over the Fed's path for rates.

The latest jobs report indicated that the U.S. economy added 428,000 jobs in April and that the unemployment rate was unchanged at 3.6 percent. Economists surveyed by The Wall Street Journal had expected the addition of 400,000 jobs in April and for the unemployment rate to drop to 3.5% where it was just before the pandemic and still a five-decade low.

The robust jobs report “could also suggest that the Fed has a little more room to be aggressive,” said Amy Kong, chief investment officer at Barrett Asset Management.

In corporate news, to DoorDash shares fell $1.04, or 1.4 percent, to $72.11 after the food-delivery company reported quarterly revenue growth late Thursday that was higher than expected although growth for the quarter decelerated. Shares of Under Armour fell $3.40, or 24% to $10.89 after the company said Covid-related supply-chain pressures hurt its sales in the latest quarter. It said the problems would not simply go away anytime soon.

Shares of DraftKings were down $1.29, or 8.9%, to $13.15 after the company reported that sales increased in the first quarter but that its loss continued to widen as it tried to woo customers.

Brent crude, the global oil benchmark, climbed 4.9 percent this week to $112.39 a barrel, adding to a recent string of gains fueled by expectations that the European Union was poised to ban imports of Russia’s oil because of its invasion of Ukraine. Gold was down 1.5% on the week to $1881.20 a troy ounce.