Global markets face a packed week as investors assess the AI-led technology selloff, US inflation data, oil price movements and geopolitical risks. Developments in Europe and Asia, along with the COP31 climate summit, will also remain in focus. (Sources: Reuters)
The Nasdaq plunged 5.5% on Thursday, marking its biggest single-day decline since April 2025 and wiping out $2.5 trillion in market value. Concerns over rising AI infrastructure costs and the prospect of tighter regulations following Democratic gains in the US midterm elections are weighing on technology stocks.
Investors will closely track Tuesday's US consumer price index (CPI) data and Friday's producer price index (PPI) numbers. The CPI is expected to rise 0.3% month-on-month, according to a Reuters poll. Markets are pricing in more than an 80% chance of another Federal Reserve rate hike in December.
Crude oil prices have retreated amid expectations that US President Donald Trump could seek to de-escalate the Iran conflict following Republican losses in the midterm elections. Any fresh escalation could push energy prices higher, stoke inflation and complicate the Federal Reserve's policy outlook.
European markets will assess employment figures and revised third-quarter GDP data. The euro zone's preliminary GDP estimate showed 0.4% growth. Investors will also track the race to succeed European Central Bank President Christine Lagarde, with former Dutch central bank governor Klaas Knot and Spain's Pablo Hernandez de Cos among the expected candidates.