Global Market Watch: Tech-Led Sell-Off and Heightened Anxiety Over Additional Tightening

Let us first take a look at the New York stock market.

While the Dow Jones Industrial Average held steady near the flatline, the S&P 500 dropped more than 1%, and the Nasdaq composite tumbled in the upper 1% range.

By sector, defensive consumer staples rose 2%, whereas technology stocks plunged nearly 3% amid growing concerns over high interest rates and negative earnings news.

The U.S. Department of Labor announced that the consumer inflation rate for September rose 3.7% compared to the same period last year, exceeding market expectations.

As inflationary pressures persisted due to rising energy prices, market anxiety over additional tightening by the Federal Reserve spiked sharply.

The Fed's October Beige Book also confirmed cost burdens stemming from rising oil prices, showing that inflationary pressures have intensified.

Next, let us look at the U.S. futures market.

With the Consumer Price Index coming in higher than expected, coupled with mounting caution over excessive debt financing by AI companies, the selling pressure widened mainly centered on tech stocks in the U.S. stock market.

U.S. stock index futures are showing mixed trading.

Dow futures are trading down 2 points around the 51,800 level, while Nasdaq futures have suffered the steepest drop, falling 96 points.

S&P 500 futures are trading lower by 9 points at the 7,700 level.

As worries grow that high interest rates could be prolonged due to inflation, caution persists even among small-cap stocks that are sensitive to fundraising, with Russell 2000 futures moving around the 2,700 level yesterday.

Meanwhile, U.S. Treasury yields turned lower as safe-haven buying flowed in following the stock market plunge.

The 10-year U.S. Treasury futures are moving at 5.182%, and the 30-year U.S. Treasury futures stand at 5.635%.

Turning to the commodity futures market, concerns over crude oil supply disruptions in the Middle East have grown following attacks on Saudi Arabian oil facilities by Yemen's Houthi rebels.

Crude oil futures are trading around the 95 dollar level.

Looking at the performance of major stock futures items, selling pressure emerged in tech stocks as financial burden concerns grew, particularly among companies that took on massive borrowings to build AI infrastructure.

Meanwhile, in the futures market, Microsoft futures are rising 1.4%, whereas Apple futures are declining in the 0.3% range.
※ Please note: This article was translated by AI and may contain errors.