NEWS

Global financial markets are experiencing a sharp wave of turbulence this Friday, with stocks, commodities, and digital assets coming under intense pressure. Risk appetite has fallen significantly as uncertainty surrounding the Federal Reserve’s upcoming decisions continues to rise. According to analytical readings from Point Trader Group, the current environment reflects a complex mix of interest rate fears, technology-sector fragility, and heightened sensitivity to macroeconomic signals.

U.S. Markets Extend Heavy Losses

U.S. equities continued their downturn after Wall Street suffered its worst trading day in more than two months. Dow Jones futures slipped around 0.6%, while S&P 500 futures fell 0.8%. Nasdaq 100 futures posted the sharpest drop of 1.3%, signaling renewed weakness across high-growth technology names. Analysts at Point Trader Group note that the tech sector’s elevated valuations have become increasingly vulnerable to sudden shifts in policy expectations.

Major technology stocks—including Nvidia, AMD, Tesla, and Palantir—extended their sell-off with declines between 3% and 4%, deepening losses from previous sessions. The continued retreat suggests a broader correction in artificial-intelligence-driven equities, which Point Trader Group identifies as one of the most overheated areas in global markets over the past year.

Thursday’s session saw the Dow tumble nearly 800 points in a single trading day—its worst performance since October 10—while the Nasdaq Composite dropped more than 2%, ending a seven-week winning streak. This decline, according to Point Trader Group, underscores the market’s fear that the AI rally may have reached an unsustainable point.

AI Sector Fears Trigger Additional Volatility

Concern surrounding artificial-intelligence investments intensified this week after a steep decline in Oracle’s stock. The sudden drop raised red flags about excessive valuations and the rapid expansion of capital spending in cloud and AI infrastructure. Point Trader Group highlights that companies with high debt levels and aggressive spending plans are now under closer scrutiny, as investors reassess long-term profitability and cash-flow stability.

Interest Rate Expectations Shift Dramatically

Market volatility has been further fueled by rapid changes in interest rate expectations. The probability of a December rate cut has fallen to around 52%, down sharply from nearly 95% a month earlier. Point Trader Group attributes this shift to a combination of hawkish remarks from Federal Reserve officials and uncertainty resulting from the recent U.S. government shutdown—the longest in American history—which disrupted economic data releases and left traders without clear guidance.

Some key economic indicators scheduled during the shutdown may never be released, adding an extra layer of uncertainty that could limit the likelihood of near-term monetary easing.

European Markets Follow Wall Street Lower

European stock markets mirrored the U.S. downturn, with the STOXX 600 index sliding 1.9% on Friday. The regional technology index fell more than 3%, weighed down by fears of an AI bubble and broader concerns about global economic momentum. Point Trader Group notes that European tech firms remain highly sensitive to U.S. market movements, making them particularly exposed during periods of global risk aversion.

Shares of Infineon, SAP, and BE Semiconductor were among the worst performers, dropping between 4% and 6% in early afternoon trading.

Cryptocurrencies Face Sharp Sell-offs

Digital asset markets also came under heavy selling pressure. Bitcoin dropped below the $95,000 level for the first time in over six months, sliding nearly 7% in 24 hours. Ethereum suffered an even larger decline of around 9%. According to Point Trader Group, cryptocurrencies are reacting aggressively to fading expectations of a December rate cut, as higher interest rates typically reduce demand for high-risk speculative assets.

Gold Retreats After Early Gains

Gold prices reversed earlier gains, falling around 1.5% to $4,110 per ounce after touching $4,211 earlier in the session. Despite the decline, Point Trader Group highlights that gold remains on track for a weekly gain supported by global uncertainty and risk-off sentiment. Silver, platinum, and palladium also recorded declines ranging from 1% to 2%.