Markets face another week of uncertainty as investors watch tech stocks, US inflation data and oil prices. The Nasdaq fell 5.5% on Thursday, wiping $2.5 trillion off the index, while traders priced in more than an 80% chance of a Fed rate hike in December.
The Nasdaq’s 5.5% drop on Thursday was its biggest since April 2025 and erased $2.5 trillion in market value. Concerns about the cost of AI investment and the prospect of tougher regulation have weighed on tech stocks; further losses could add to growth worries.
Tuesday’s US consumer price index is expected to rise 0.3% month over month, according to a Reuters poll, with producer prices due Friday. Traders are pricing in more than an 80% chance of a Fed rate hike at its December 8-9 meeting, which would bring the federal funds rate to 4.00%-4.25%. Oil prices have pulled back as investors weigh the possibility of de-escalation in the Iran war.
Europe will publish employment data and a revised estimate of third-quarter GDP, after a preliminary reading showed 0.4% growth. Finance ministers are also due to discuss candidates to replace ECB President Christine Lagarde. Elsewhere, China will release inflation and lending data, New Zealand will hold an election, and the UN COP31 climate summit will begin in Turkey.
