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Global stock markets collapsed under the weight of rising recession fears. But the Nasdaq was hardest hit. The tech-heavy index had its sharpest one-day point drop since the markets reopened after the September 11 attacks. The Dow slumped 256 points. The S&P 500 lost 35 points. The Nasdaq tumbled 98 points or about 3.8 percent. For the week: Blue chips lost 4-1/4 percent. The Nasdaq took a 6.4 percent haircut. Recession fears were fueled by a dismal December jobs report. The U.S. economy saw its weakest job growth in over 4-years, and the unemployment rate spiked to 5 percent - a more than 2-year high. Economists say the report is the clearest signal yet that the economy is in the midst of a rapid slowdown. And may mean a more aggressive Federal Reserve. Lehman Brothers Chief U.S. Economist - Ethan Harris. SOUNDBITE: Ethan Harris, chief U.S. economist, Lehman Brothers (English) saying: "Up to now the data flows just hasn't justified the Fed thinking about 50 basis points.....(the economy showing some signs of slowing - but not in a very dramatic fashion)..... with this payroll number if we continue to get very weak data going into the meeting, I think the Fed will cut by 50 basis points." The dollar did not do well under that view, but the bond market saw a modest bounce. Meanwhile, equity investors found very few places to hide. Large cap tech was punished. Intel and Research in Motion fell over 8 percent. And Apple wasn't far behind. And outside of technology....homebuilders were a major selling category...followed up by anything related to the consumer. Commodity prices gave up recent gains. Crude oil finished well off its $100 record. Analysts expect domestic demand to fall in line with a slowing economy. And gold, which is usually seen as a safe-haven, actually fell as profit-takers moved in. The picture in Europe was no brighter. The German Dax slid 1-1/4 percent. The Paris CAC-40 lost 1.8 percent. The London FTSE saw a decline of 2 percent. For Reuters. I'm Conway Gittens.