U.S. Government Faces Brief Shutdown as Congress Delays Funding Deal 
Oil Prices Slide Nearly 3% as U.S.-Iran Talks Ease Geopolitical Tensions 
Canada’s Trade Deficit Jumps in November as Exports Slide and Firms Diversify Away From U.S. 
Wall Street Slips as Tech Stocks Slide on AI Spending Fears and Earnings Concerns 
Starmer’s China Visit Highlights Western Balancing Act Amid U.S.-China Rivalry 
BOJ Policymakers Warn Weak Yen Could Fuel Inflation Risks and Delay Rate Action 
China Factory Activity Slips in January as Weak Demand Weighs on Growth Outlook 
Russia Stocks End Flat as MOEX Closes Unchanged Amid Mixed Global Signals 
India Budget 2026: Modi Government Eyes Reforms Amid Global Uncertainty and Fiscal Pressures 
Wall Street Slides as Warsh Fed Nomination, Hot Inflation, and Precious Metals Rout Shake Markets 
Indonesia Stocks Face Fragile Sentiment After MSCI Warning and Market Rout 
Asian Stocks Waver as Trump Signals Fed Pick, Shutdown Deal and Tech Earnings Stir Markets 
Gold Prices Stabilize in Asian Trade After Sharp Weekly Losses Amid Fed Uncertainty 
China Manufacturing PMI Slips Into Contraction in January as Weak Demand Pressures Economy 
Asian Currencies Hold Firm as Dollar Rebounds on Fed Chair Nomination Hopes 
South Korea Factory Activity Hits 18-Month High as Export Demand Surges 
Global financial markets ended Friday on a weaker note as major stock indexes declined, led by a sharp selloff in technology shares amid renewed skepticism over artificial intelligence investments. Rising U.S. Treasury yields and a firmer dollar further pressured equities, highlighting investor caution despite the traditionally strong year-end period for stocks.
Technology stocks were the worst-performing sector in the S&P 500, falling nearly 3% as concerns about high spending and shrinking margins in the AI and cloud computing space intensified. Shares of chipmaker Broadcom plunged more than 11% after it warned about margin pressures, while Oracle extended losses with another drop following weak forecasts and heavy investment spending. Nvidia, a key AI bellwether, also declined, reflecting broader uncertainty around the sustainability of the AI-driven rally.
Market sentiment was further weighed down by comments from U.S. Federal Reserve officials who opposed this week’s interest rate cut. They emphasized that inflation remains too elevated to justify aggressive easing, pushing U.S. Treasury yields higher. The benchmark 10-year Treasury yield climbed above 4.19%, marking its second consecutive weekly increase, and rising yields added pressure on equity valuations.
Despite the Fed’s 25-basis-point rate cut earlier in the week, policymakers signaled a pause in further reductions, even as concerns grow about a cooling U.S. labor market. Recent jobless claims data showed the largest weekly increase in new unemployment filings in over four years, adding complexity to the outlook for monetary policy.
Global markets mirrored the cautious tone. European stocks fell, with bond yields in Germany reaching multi-year highs as investors began pricing in the possibility of future euro zone rate hikes. Currency markets saw the U.S. dollar edge higher, while sterling weakened after data showed the UK economy unexpectedly contracted. The yen remained under pressure ahead of an anticipated Bank of Japan rate hike.
Commodities also retreated, with copper sliding sharply from record highs on fears of an AI-driven demand bubble bursting. Oil prices posted a weekly decline as supply concerns outweighed geopolitical risks, underscoring the broader risk-off mood across global markets.
