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%.

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 rose. This came after weekly initial jobless claims came in higher than expected and manufacturing data slowed on Thursday.

Asia-Pacific markets logged steep losses Friday, with Japan’s benchmark indexes tanking as much as 5%.

Cedric Chehab, global head of country risk at BMI, told CNBC’s “Street Signs Asia” that a U.S.-led sell-off started a week and a half ago but escalated in the middle of this week. That was due to factors including the hawkish Bank of Japan imploding the popular yen carry trade in the short term, weak U.S. data and volatility in earnings.

“But one thing people aren’t remembering is that usually between the period of July and October there is a seasonal rise in volatility for equity markets, so this isn’t completely unexpected,” Chehab said.

“Especially after the fact that there was such a large rally in U.S. stocks and global stocks, the fact that earnings came in a bit mixed and valuations are high, but also monetary policy remains very tight in real terms,” he added.