Global markets continued their downward spiral yesterday, with tech stocks taking a hit after weeks of speculation about the sector's performance. The sell-off was fueled by concerns over valuation and a slowdown in China's economy, which saw its economic activity cool more than expected.
The FTSE 100 slumped 1.1% to 9,698, led by banking stocks that tumbled between 2.7% and 3.6%. Barclays, Lloyds, and NatWest all fell as investors took a hit from the UK government's decision not to raise income tax rates in the upcoming budget.
Meanwhile, US markets also faced pressure, with the S&P 500 starting the day lower before closing flat. The Dow Jones industrial average declined 0.7%, while tech-focused Nasdaq Composite fell by as much as 1.8% but then recovered its losses to climb 0.1%.
The tech sector was at the center of the sell-off, with Nvidia and other companies tumbling over valuation concerns. SoftBank's decision to sell its entire stake in Nvidia sparked a decline in the AI sector, which saw major players like SK Hynix, Samsung Electronics, and Taiwan Semiconductor Manufacturing Company all fall.
China's economic data also weighed on global markets, with fixed-asset investment shrinking 1.7% in the first 10 months of the year, according to the National Bureau of Statistics. The CSI 300 fell 0.7%, while Hong Kong's Hang Seng dropped 0.9%.
The impact of a record-breaking federal government shutdown in the US also had an effect on markets, as investors waited for data on inflation and jobs that was put on hold due to the shutdown.
Analysts were divided over whether the Fed would cut rates next month, with some warning of caution after several speakers struck a more cautious tone. "It's certainly been a volatile week in terms of sentiment," said Jim Reid at Deutsche Bank. The S&P 500 posted its worst day in over a month, and December rate-cut expectations fell sharply.
Despite the weakness in Asian markets being less pronounced than on Wall Street, there was still a high degree of sluggishness among risk assets, with investors taking on more pessimism about China's economic prospects. However, hopes of stimulus from Chinese authorities did offer some respite, albeit briefly, after underwhelming data raised hopes of further action.
The pound fell nearly 0.5% against the dollar to $1.31, as investors weighed the potential impact of Chancellor Rachel Reeves' U-turn on raising income tax in the budget.
The FTSE 100 slumped 1.1% to 9,698, led by banking stocks that tumbled between 2.7% and 3.6%. Barclays, Lloyds, and NatWest all fell as investors took a hit from the UK government's decision not to raise income tax rates in the upcoming budget.
Meanwhile, US markets also faced pressure, with the S&P 500 starting the day lower before closing flat. The Dow Jones industrial average declined 0.7%, while tech-focused Nasdaq Composite fell by as much as 1.8% but then recovered its losses to climb 0.1%.
The tech sector was at the center of the sell-off, with Nvidia and other companies tumbling over valuation concerns. SoftBank's decision to sell its entire stake in Nvidia sparked a decline in the AI sector, which saw major players like SK Hynix, Samsung Electronics, and Taiwan Semiconductor Manufacturing Company all fall.
China's economic data also weighed on global markets, with fixed-asset investment shrinking 1.7% in the first 10 months of the year, according to the National Bureau of Statistics. The CSI 300 fell 0.7%, while Hong Kong's Hang Seng dropped 0.9%.
The impact of a record-breaking federal government shutdown in the US also had an effect on markets, as investors waited for data on inflation and jobs that was put on hold due to the shutdown.
Analysts were divided over whether the Fed would cut rates next month, with some warning of caution after several speakers struck a more cautious tone. "It's certainly been a volatile week in terms of sentiment," said Jim Reid at Deutsche Bank. The S&P 500 posted its worst day in over a month, and December rate-cut expectations fell sharply.
Despite the weakness in Asian markets being less pronounced than on Wall Street, there was still a high degree of sluggishness among risk assets, with investors taking on more pessimism about China's economic prospects. However, hopes of stimulus from Chinese authorities did offer some respite, albeit briefly, after underwhelming data raised hopes of further action.
The pound fell nearly 0.5% against the dollar to $1.31, as investors weighed the potential impact of Chancellor Rachel Reeves' U-turn on raising income tax in the budget.
I'm getting a bit worried about these market fluctuations. It's like everyone's caught up in this game of "when will rates go down next?" and nobody's paying attention to the bigger picture. The slowdown in China's economy is definitely something to watch, but so is this obsession with tech stocks. When are we going to take a step back and think about what's really important? 
. It feels like everyone's waiting for someone else to make a move, instead of taking bold action themselves 
. And what's with the US government shutdown affecting markets? Shouldn't investors be more concerned about actual economic data rather than some bureaucratic holdup 
?
. Like what's going on with tech stocks? Nvidia's stake sale and all that's just crazy talk 
️.
. This is all just so confusing 
.
. The FTSE 100 dropped 1.1% which is a big deal 
. 
. The Dow Jones industrial average declined by 0.7% while the Nasdaq Composite fell as much as 1.8% but then recovered 
. It's like investors are all over the place 
.
. Fixed-asset investment shrinking 1.7% in the first 10 months of the year? That's some serious slowdown 
.
but others are saying caution 
. Whatever happens, markets are on edge 
️ and who can blame them when it feels like no one knows what's gonna happen next? China's economy cooling down is definitely not helping, but idk if anyone saw this coming 
. anyway, it's not like the tech sector was already overvalued or anything 
Anyway, I'm kinda surprised that tech stocks got hit so hard after all the speculation about their performance. I mean, I get it, valuation concerns are always a thing, but come on, guys! 
.
. I guess we'll just have to wait and see what happens next with that income tax thingy... fingers crossed it doesn't mess up the whole economy 
️
and I'm still reeling from the food coma 
. Have you ever tried that new ramen place downtown? I swear, their tonkotsu broth is like a taste explosion in your mouth 
, just another attempt to keep people in the dark while they quietly collect more taxes. The tech sector getting hammered? Nvidia selling off its stake and the whole AI sector going down the drain? This is just business as usual 
.
. It's not easy, but I think it's better to focus on what we can control and not let our emotions get the best of us 
We got this!
.
Nvidia and SoftBank sell off hard 
Tech stocks taking a hit is one thing, but it could also be an opportunity for some investors to get in at a lower price point 
. And who knows, maybe this slowdown in China's economy will lead to more innovation and growth in other areas 
.
. So, yeah, it's not all bad news out there 
. And let's not forget, those Chinese authorities might just surprise us with some stimulus after all 
The global market sell-off is getting intense! China's economic slowdown and tech stocks taking a hit are major contributors to this downturn 