November's Finale: Global Markets Tumble as Tech Jitters Return

Global markets experienced a sharp downturn this week, with equities in major regions posting losses as investors reacted to uncertainty about U.S. interest rates and renewed anxiety over high valuations in technology stocks. Despite stellar earnings from companies like Nvidia [finance:NVIDIA Corporation], the sell-off was widespread, highlighting investors’ skittishness about the near-term economic outlook.

Equities Decline Across Regions

• In the United States, the S&P 500 [finance:S&P 500] shed around 2.9% for the week, while the Nasdaq [finance:Nasdaq Composite] dropped 3.6% and the Dow Jones Industrial Average [finance:Dow Jones Industrial Average] slid 0.8%.
• The drop was driven by volatility in tech stocks, despite Nvidia [finance:NVIDIA Corporation] reporting impressive quarterly results and forecasts—the Nasdaq saw its largest single-day fluctuation since April.
• European stocks followed suit, with the Euro Stoxx 50 down 1.4% in premarket trading on Friday and the FTSE 100 lower by 1%.
• Asian markets deepened the global slump: Japan’s Nikkei [finance:Nikkei 225] fell 2.2% on Friday and closed the week down 3.3%, Taiwan’s market slipped 3.4%, and South Korea dropped 3.7%.
• Chinese benchmarks, including the CSI 300 and Hong Kong’s Hang Seng [finance:Hang Seng Index], both posted 1.5% declines.

Economic Drivers and Market Sentiment

• Ambiguity in U.S. jobs data contributed to uncertainty, complicating predictions for Federal Reserve policy at its next meeting.
• Treasury yields slipped as traders slightly increased bets on a possible December rate cut, yet most remain unconvinced that an easing move is imminent.
• Volatility spiked, with the VIX closing at 26.42, as options expiry introduced additional market swings.
• Money flowed out of money market funds for a second week while emerging market equity funds continued to see net inflows, reflecting a shift in risk appetite.

Sector Highlights

• The week saw marked weakness not just in technology, but also in sectors such as consumer discretionary, financials, materials, and energy, affecting global indices.
• Despite the overall risk-off mood, sectors like healthcare attracted net inflows, indicating some rotation of capital within equities.

Commodities and Currencies

• Oil prices declined by almost 3% for the week amid reports of renewed calls for a peace deal in Ukraine, while gold was relatively steady but slightly lower.
• In currency markets, sentiment remained cautious, mirroring the downbeat mood in risk assets.

The week’s global retreat underscores persistent uncertainty over the direction of interest rates, ongoing concerns about tech overvaluation, and mixed economic data, leaving investors bracing for further volatility ahead of next month’s key central bank decisions.