US equities came under pressure this week, led by a sharp sell-off in technology and AI-related stocks. The Nasdaq fell 5.5% on Thursday as the Democratic midterm sweep raised concerns over tighter regulation and the pace of US data-centre development, adding to existing worries around elevated AI capex and investment returns.
US data remained resilient, with payrolls rising by 165,000 in October and unemployment edging down to 4.1%, while JOLTS and ISM data also pointed to continued economic strength. In Europe, inflation rose while PMIs softened. On the central bank front, the Bank of England and Reserve Bank of Australia raised rates, while Brazil held steady and Mexico cut.
