Macro update
Wall Street tumbles:
US equities suffered their sharpest decline in more than a month, with the S&P 500 dropping 1.66% and the Nasdaq 100 falling 2.29% as losses in major artificial intelligence (AI) names dragged the market lower.
Big tech under pressure:
Nvidia slid 3.6%, Tesla dropped 6.6% and Broadcom fell 4.3% as investors reassessed elevated valuations across the AI and semiconductor space.
Rate-cut expectations weaken:
Hawkish remarks from Federal Reserve (Fed) officials pushed the market-implied probability of a December rate cut towards 50%, pressuring stocks, bonds and the US dollar.
Rotation into value:
Consumer discretionary and tech stocks led declines, while value shares outperformed growth over the week.
Global risk-off tone:
Asian and European futures softened and Treasury yields inched higher as investors awaited delayed US economic data following the end of the shutdown.
FTSE 100 bounces off support
Last week the FTSE 100 swiftly came off its 9,928 record high amid global risk-off sentiment but managed to level out at 9,606 on Friday, close to the critical early November low at 9,572. As long as this level holds, the medium-term uptrend remains intact. Failure there may lead to a top forming, though.
Minor resistance is seen between the late October and early November highs at 9,792-to-9788.
