Global Stock Markets Slide Amid Growing Concerns Over U.S. Economy and Tech Valuations

By Mahadi Tukur AlmizanLead:Stock markets around the world experienced sharp declines this week, driven by mounting fears of a weakening U.S. economy and plunging valuations in the technology sector.

The Nasdaq recorded its worst week since April, falling approximately 3%. The S&P 500 and Dow Jones also posted significant losses as investors reassessed growth prospects and risk in technology and artificial intelligence-linked shares. Tech giants tied to AI were severely impacted, with ~$750 billion in market value erased from firms such as Nvidia and Meta Platforms leading the drop. European markets mirrored the U.S., with the Stoxx 600 suffering its worst week since August and the FTSE 100 hitting a two-week low.

The Russell 2000 reached a seven-week trough. Analysts point to eroding consumer sentiment in the U.S., fears over future unemployment, and the spectre of government shutdowns as underlying causes. In other news, UK housing prices ticked up, and global food prices declined for the second month, although global investors remain cautious.