Tech Selloff Deepens as Dollar Slides and Gold Rises

The Nasdaq fell more than 2% this week, with AI-related stocks such as Meta and Palantir under pressure as investors questioned stretched tech valuations. The US dollar weakened to 99.70 against a basket of peers after data showed a sharp rise in layoffs, lifting gold to $4,005 per ounce and pushing traders to increase bets on a December rate cut. Brent crude rose to $64.03 a barrel early Friday following three days of declines driven by higher US inventories and OPEC+ output increases.

Equities

The FTSE 100 closed 0.4% lower on Thursday, giving up record highs reached a day earlier as sterling strengthened following the Bank of England’s closely divided decision to keep interest rates unchanged. The pound rose 0.45% after Governor Andrew Bailey hinted that policymakers could consider a rate cut in December once new labour market and inflation data become available. The mid-cap FTSE 250 slipped 0.5% as broader risk appetite eased.

AstraZeneca gained 3% after reporting stronger-than-expected third-quarter results, supported by rising sales of cancer and heart drugs. The pharmaceutical group said continued demand for key treatments helped offset pricing pressures. BP dipped 0.5% and Shell lost 0.4% as oil prices declined. Industrial stocks fell sharply, with the aerospace and defence sector down 2.1%. Smith & Nephew dropped 10.8% after missing revenue expectations due to weakness in its US knee implant business, prompting analysts to question its growth outlook.

Sainsbury’s rose 5.5% after lifting its full-year profit forecast, citing steady grocery demand and stronger sales momentum heading into Christmas. Drinks group Diageo fell 6.5% after it cut its 2026 sales and profit targets, warning of slower growth in key markets. Banking shares moved higher after a report from the Financial Times said finance minister Rachel Reeves was unlikely to impose heavier taxes on lenders in the upcoming budget. Standard Chartered advanced 1.5% and Barclays climbed 1%.

On Wall Street, US stocks ended lower on Thursday as large-cap technology and consumer stocks dragged indices down. The Dow Jones Industrial Average slipped 0.84%, the S&P 500 fell 1.12%, and the Nasdaq Composite lost 1.9%. Semiconductor shares weakened sharply, with the Philadelphia Semiconductor Index down 2.4%.

DoorDash slumped 17.5% after the delivery company’s third-quarter profit missed expectations due to higher expenses. Cosmetics firm Elf Beauty plunged 35% after forecasting annual sales and profit below analysts’ targets. Snap gained 9.7% after reporting better-than-expected quarterly revenue and unveiling a partnership with Perplexity AI.

Forex & Commodities

The US dollar fell on Thursday against the euro, yen and Swiss franc after weak private-sector labour data added to expectations of another interest rate cut before the end of the year. The euro rose to $1.1547, the dollar eased to ¥153.1 against the yen and to 0.8060 against the Swiss franc. Sterling traded higher at $1.3088 after the Bank of England kept rates unchanged in a narrow vote ahead of the government’s 26 November budget.

Data from Challenger, Gray & Christmas showed that US-based employers announced more than 150,000 job cuts in October, the largest monthly reduction in over two decades. The figures, alongside reports from Revelio Labs showing a decline in total employment, led investors to increase expectations of a December rate cut. The Federal Reserve has already lowered borrowing costs this month, and the CME FedWatch tool now puts the chance of another reduction at about two-thirds.

In Norway, the krone held steady against the dollar after Norges Bank left its policy rate at 4.0%, citing ongoing inflationary pressures. The central bank repeated that further easing remained likely in the coming months following rate cuts in June and September.

Gold rose on Friday morning, trading 0.7% higher at $4,005 per ounce, supported by the weaker dollar and continued demand for safe-haven assets amid the ongoing US government shutdown.

Oil prices also strengthened early on Friday, with Brent crude at $64.03 per barrel and US West Texas Intermediate at $60.08. The move followed three days of losses as traders assessed higher US inventories and concerns over global supply after OPEC+ announced a modest output increase for December.