Global markets fell sharply this week after a sell-off in major US tech stocks triggered a broader retreat. Investors reassessed risk as tech valuations appeared stretched, prompting caution across multiple sectors.
In the United States, the S&P 500 dropped 1.2% while the Nasdaq fell 2%. Shares of Nvidia, Microsoft, and Palantir pulled back, with Palantir declining almost 8% despite reporting strong earnings. Futures suggest further weakness in early sessions.
Asian markets followed Wall Street lower. Japan’s Nikkei tumbled more than 4%, and South Korea’s Kospi fell around 5%. South Korea even triggered a trading halt after futures dropped sharply, highlighting heightened volatility. Chip-sector names led the losses, with several Japanese tech firms experiencing double-digit declines.
Cryptocurrencies also faced pressure. Bitcoin briefly fell below $100,000 before modestly recovering in early Asia trade. Ether and smaller cryptocurrencies dropped sharply following heavy October liquidations. Bitcoin’s gains this year remain below 10%, trailing equities as institutional participation declines.
Investors sought safer assets amid the turmoil. Treasuries and the Japanese yen rose, while gold stabilized after a steep fall earlier in the week. Oil prices also softened as risk sentiment weakened.
Federal Reserve policymakers contributed to market caution. Three Fed officials declined to support further rate cuts, citing the need to balance persistent inflation with a softer labor market. Traders now await speeches from St. Louis Fed President Alberto Musalem and Cleveland Fed Chief Beth Hammack.
Corporate earnings remain in focus. Strong results from major companies such as McDonald’s, Expedia, and Qualcomm have not prevented broader sell-offs. Analysts suggest the market correction is healthy after tech-related stocks surged earlier, pushing valuations to high levels.
Looking ahead, markets are likely to remain volatile. Investors are advised to balance short-term risks with long-term opportunities. Analysts stress careful monitoring of tech stocks, global economic indicators, and cryptocurrency flows.
