Global markets experienced a day of turmoil on Friday, with tech stocks at the forefront of the sell-off. The FTSE 100 index plummeted by 1.1% to close at 9,698, as banking stocks like Barclays, Lloyds, and NatWest took a beating, slipping between 2.7% and 3.6%.
The UK's blue-chip index had threatened to break through the 10,000-point mark earlier in the week but ultimately failed to do so. The pound also fell against the dollar after Chancellor Rachel Reeves abandoned plans to raise income tax rates in her budget.
Across the Atlantic, US markets faced fresh pressure on Friday before rebounding. The S&P 500 started the day lower but closed flat, while the Dow Jones industrial average declined by 0.7%. However, tech-focused Nasdaq Composite initially fell by as much as 1.8% before recovering to climb 0.1%.
European markets also suffered, with the pan-European Stoxx 600 falling 0.9%, followed by France's Cac 40, which has fallen 0.54%, and Germany's Dax, dropping nearly 0.9%. Japan's Nikkei fell 1.8% as Nvidia, a leading tech company, tumbled 3.6% due to valuation concerns.
Nvidia's slump was part of a broader sector decline, with SoftBank and SK Hynix, a Chinese chipmaker, falling more than 6%. Samsung Electronics dropped 4%, while Taiwan Semiconductor Manufacturing Company fell by 1.8%.
The sell-off was also driven by fears over the slowdown in China's economy, which showed an unprecedented slump in investment figures. China's CSI 300 index fell 0.7% after data revealed that fixed-asset investment shrank by 1.7% in the first 10 months of the year.
US markets were jittery over the impact on the economy of a long federal government shutdown, which has delayed the release of inflation and jobs data. A growing number of officials have also expressed caution about the prospects of a US rate cut next month.
Analysts at Deutsche Bank and Capital.com attributed the volatility to relief over the end of the shutdown, combined with concerns over AI valuations and whether the Fed will cut rates again. The S&P 500 posted its worst day in over a month, with the December cut probability falling sharply from about 59% to 49%.
The UK's blue-chip index had threatened to break through the 10,000-point mark earlier in the week but ultimately failed to do so. The pound also fell against the dollar after Chancellor Rachel Reeves abandoned plans to raise income tax rates in her budget.
Across the Atlantic, US markets faced fresh pressure on Friday before rebounding. The S&P 500 started the day lower but closed flat, while the Dow Jones industrial average declined by 0.7%. However, tech-focused Nasdaq Composite initially fell by as much as 1.8% before recovering to climb 0.1%.
European markets also suffered, with the pan-European Stoxx 600 falling 0.9%, followed by France's Cac 40, which has fallen 0.54%, and Germany's Dax, dropping nearly 0.9%. Japan's Nikkei fell 1.8% as Nvidia, a leading tech company, tumbled 3.6% due to valuation concerns.
Nvidia's slump was part of a broader sector decline, with SoftBank and SK Hynix, a Chinese chipmaker, falling more than 6%. Samsung Electronics dropped 4%, while Taiwan Semiconductor Manufacturing Company fell by 1.8%.
The sell-off was also driven by fears over the slowdown in China's economy, which showed an unprecedented slump in investment figures. China's CSI 300 index fell 0.7% after data revealed that fixed-asset investment shrank by 1.7% in the first 10 months of the year.
US markets were jittery over the impact on the economy of a long federal government shutdown, which has delayed the release of inflation and jobs data. A growing number of officials have also expressed caution about the prospects of a US rate cut next month.
Analysts at Deutsche Bank and Capital.com attributed the volatility to relief over the end of the shutdown, combined with concerns over AI valuations and whether the Fed will cut rates again. The S&P 500 posted its worst day in over a month, with the December cut probability falling sharply from about 59% to 49%.
tech stocks are getting pummeled 
and nobody knows why 
. Nvidia is just a wild card atm... i feel bad for softbank, they're taking a hit too 
china slowdown is a big deal tho 
hope the fed makes some smart moves soon 
49% chance of rate cut? 
. Nvidia's decline is making everyone nervous 
. If they can't get their valuations back on track, who knows what happens to those other big chipmakers? 
. Some people might say it's a good opportunity to buy low 
, but I'll stick to my gut feeling 
...
Ugh, I'm totally bummed that tech stocks are getting crushed 
. I mean, who wants to see their portfolio tank? 
... China's economy slowdown is no joke 
? 
.
. But seriously, it feels like everything is connected - my teacher saying we need to budget better for the upcoming exams, and the economy going crazy with tech stocks plummeting