Market Jitters Over US Rates and Tech Valuations
Global stock markets faced a difficult trading session on Friday, 14th November 2025, as investor confidence was shaken by growing doubts about a potential US interest rate cut and persistent fears of a technology sector bubble.
The uncertainty on Wall Street rippled across the globe, impacting major European and Asian indices. London's FTSE 100 fell 1.1%, closing at 9,696.47 points, after UK government bonds and the pound weakened. This decline followed reports that Finance Minister Rachel Reeves had abandoned plans to increase income taxes, raising concerns about the nation's public finances.
Oil Prices Defy the Trend
In a contrasting move, oil markets saw a significant rally. Brent crude prices jumped 2.4% to $64.47 per barrel, while West Texas Intermediate increased by 2.6% to $60.209. Analysts pointed to heightened risks for Russian oil flows, driven by Ukrainian strikes and recent US sanctions targeting the country's two largest producers, as key factors behind the price surge.
Fawad Razaqzada, a market analyst at StoneX, commented on the tech sector's volatility, stating, "After an extraordinary run that began in April, the tech sector has finally started to wobble, with valuations looking overstretched in recent weeks." He added that while markets might remain jumpy, it is still too early to declare the end of the current market cycle.
A Volatile Week for Investors
Jim Reid, Managing Director at Deutsche Bank, described it as a "volatile week", where relief from the end of the US government shutdown competed with anxieties over artificial intelligence (AI) stock valuations and the Federal Reserve's next move.
The primary source of market unease was a shift in expectations for US monetary policy. Traders scaled back their bets on an interest rate cut in December after several Federal Reserve officials expressed caution about reducing borrowing costs while inflation remains elevated. This sentiment was initially seeded by Fed Chief Jerome Powell's comment last month that a December rate cut was not a "foregone conclusion."
Key market performances at around 1640 GMT included:
- New York - Dow: DOWN 0.4% at 47,258.32
- New York - S&P 500: UP 0.3% at 6,756.59
- New York - Nasdaq: UP 0.6% at 23,009.13
- Paris - CAC 40: DOWN 0.8% at 8,170.09
- Frankfurt - DAX: DOWN 0.7% at 23,876.55
- Tokyo - Nikkei 225: DOWN 1.8% at 50,376.53
- Hong Kong - Hang Seng: DOWN 1.9% at 26,572.46
- Shanghai - Composite: DOWN 1.0% at 3,990.49
Joshua Mahony, chief market analyst at Scope Markets, confirmed that "the tech-sector rout from Wall Street spilled across the globe" on Friday. Investors are now keenly awaiting the release of delayed US economic data, particularly on jobs and inflation, which was held up by the recent government shutdown.
