Global markets extended their sharp selloff on Friday, with Asian and European equities sliding and U.S. futures pointing lower as investors continued to dump richly valued tech stocks. Nvidia’s strong earnings failed to stem the declines, while the latest U.S. jobs report offered little clarity on the Fed’s rate path. Bitcoin also hit a 7-month low, reinforcing the flight from risk.
The MSCI World Equity Index fell 0.5%, heading for a 3.2% weekly drop, its steepest since March.
What Investors Are Saying
Gerry Fowler, UBS
Fowler attributes the move largely to futures-led selling, amplified by CTA and risk-control funds in a year-end liquidity squeeze. “A pretty rapid tightening in the liquidity environment… a lot of this was just pulling on a string.”
Rory McPherson, Wren Sterling
McPherson calls it a “healthy selloff” after U.S. tech surged 55% from April lows. Bitcoin’s crash drained momentum from leveraged tech trades, while fading expectations for a December Fed cut added pressure. Defensive sectors like healthcare are outperforming. “Nvidia’s numbers were wonderful—but they didn’t answer the question of whether others can monetize AI.”
Rory Dowie, Marlborough
Dowie notes a cash-flow rotation: quality, cash-generating sectors (healthcare, staples) are outperforming while speculative pockets—especially industrials tied to AI data-centre build-outs—are selling off. Despite 85% of U.S. companies beating earnings, markets are punishing misses more aggressively.
Johanna Handte, Bethmann Bank
Handte dismisses comparisons to the dot-com bubble, pointing out that Nvidia’s P/E ~30 is far from the P/E 90 seen in names like Cisco and Oracle in 2000. As long as profits grow, she sees no structural cracks. “A 15% correction is not relevant in long-term markets… These are minor fluctuations.”