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Global financial markets fell sharply on Friday as a wave of selling hit the technology sector and new economic data from China signaled deepening weakness in the world’s second-largest economy. The combination triggered a broad risk-off mood among investors and raised fresh concerns about global growth heading into the final weeks of the year.
Tech Sector Leads the Global Downturn
The sell-off began in the United States, where the Nasdaq Composite dropped nearly 2% at one point, pressured by steep declines in major technology and artificial intelligence stocks.
One of the biggest triggers was Nvidia’s 3.6% slide, following reports that SoftBank had fully exited its position in the company. The move sent shockwaves through the semiconductor sector, pulling other chipmakers and AI-related firms lower.
The S&P 500 finished the session flat after an unstable trading day, while the Dow Jones Industrial Average dipped around 0.7%.
Weak Chinese Data Deepens Global Anxiety
Markets were further unsettled by disappointing economic statistics from China.
According to the latest reports:
- Fixed-asset investment fell 1.7% in the first ten months of the year.
- Industrial production grew more slowly than expected.
- Retail sales posted weaker-than-forecast numbers.
The data reinforced fears that China’s recovery remains fragile, threatening global supply chains, commodity demand, and overall trade flows.
Asian markets reacted instantly. The Hang Seng Index in Hong Kong dropped more than 2%, while Shanghai’s market also posted broad declines.
Federal Reserve Messages Reduce Rate-Cut Hopes
Investors had been hoping for clearer signals that the U.S. Federal Reserve might begin cutting interest rates earlier next year. However, recent comments from Fed officials emphasized caution and suggested that monetary policy will remain tight until inflation convincingly retreats.
This shift in expectations added further pressure to high-growth and tech stocks, which tend to be more sensitive to interest rate changes.
Europe and Global Markets Follow the Slide
The downturn spread to Europe, where most major indices closed lower:
- The FTSE 100 fell roughly 1.1%, led by declines in bank and energy shares.
- Germany’s DAX and France’s CAC 40 also lost ground amid global uncertainty.
Fund flow data showed that equity inflows worldwide dropped sharply for the week, a sign that investors are moving to safer assets such as bonds and cash.
What Comes Next?
Analysts warn that the combination of technology-sector weakness, Chinese economic concerns, and unclear rate-cut timing could keep markets volatile into December.
Key factors to watch in the coming days:
- Whether China rolls out new stimulus measures.
- U.S. and European inflation reports that could shift interest-rate expectations.
- Earnings results from major tech companies.
- Oil price reaction to global demand concerns.
For now, investors appear positioned defensively, waiting for clearer signals before re-entering risk assets.
