Global markets faced a day of volatility following a significant decline in technology stocks, leading to Wall Street’s most challenging trading day in a month, compounded by disappointing economic data from China indicating a notable drop in investment.
The FTSE 100 index in London decreased by 1.1%, closing down approximately 100 points at 9,698, with major banking stocks such as Barclays, Lloyds, and NatWest decreasing between 2.7% and 3.6%. The UK blue-chip index had previously come close to surpassing the 10,000-point threshold. Additionally, the British pound weakened against the dollar after the Chancellor, Rachel Reeves, reversed plans to increase income tax rates in the forthcoming budget.
US markets also felt pressure, with the S&P 500 opening lower but concluding the day nearly flat, while the Dow Jones industrial average fell by 0.7%. The tech-centric Nasdaq Composite initially declined by as much as 1.8% before recovering to show a slight increase of 0.1%.
European markets mirrored these trends, with the pan-European Stoxx 600 declining by 0.9%. Individual markets in France, Germany, and Japan also experienced losses. Japan’s Nikkei index fell by 1.8%, South Korea’s Kospi dropped by 2.6%, and Australia’s market declined by 1.5%.
The downturn in tech stocks was notably influenced by Nvidia, which dropped by 3.6% following SoftBank’s divestiture of its stake in the company, raising concerns about valuations in the AI sector.
Furthermore, the global markets reacted to concerns regarding potential economic slowdowns in China, where recent data showed a 1.7% decrease in fixed-asset investment over the first ten months, marking a record low. The CSI 300 index fell by 0.7%, and other Asian markets also experienced declines. In the US, uncertainty loomed over the implications of the longest federal government shutdown in history, which had delayed the release of key economic data.
Analysts noted heightened volatility regarding market sentiment, with expectations for potential Federal Reserve rate cuts showing signs of caution alongside ongoing fluctuations in AI-related investments. The pound also fell nearly 0.5% against the dollar amid these developments.
Source: https://www.theguardian.com/business/2025/nov/14/global-markets-fall-after-tech-sell-off-chinese-economy-fears