Global stock markets experienced a decline on January 12 and 13, 2025, largely influenced by stronger-than-expected U.S. jobs data released on January 12. The report indicated that 223,000 new jobs were added in December, with the unemployment rate at 4.1%. This unexpected strength in the labor market has led to heightened expectations that the Federal Reserve will maintain elevated interest rates for a longer period than previously anticipated. The U.S. dollar surged to a two-year high as a result, which further pressured other currencies, including a weakening Indian rupee. Additionally, sustained foreign fund outflows and rising oil prices contributed to the selling pressure in markets. Analysts noted that the spike in the U.S. Dollar Index and the consistent selling by foreign institutional investors were also key factors in the market's downturn.