On Thursday, the Dow Jones Index (US30) fell by 0.84%. The S&P 500 Index (US500) dropped by 1.12%. The technology-heavy Nasdaq Index (US100) closed lower by 1.90%. Pressure on the technology sector and companies linked to artificial intelligence once again hit Wall Street sentiment. Weak signals from the labor market exacerbated the tech sell-off. According to Challenger, employers announced 153,000 job cuts in October, the highest figure for this month in 22 years, with a significant portion of the reductions linked to AI adoption and cost optimization. Due to limited official data releases amid the government shutdown, investors were forced to rely on private indicators.
The Mexican peso strengthened above 18.6 per US dollar, rebounding from an eight-week low, as investors digested the latest decision from the Bank of Mexico (Banxico) amid a weakening dollar. As expected, the regulator cut the key interest rate by 25 bps to 7.25% with a 4-to-1 vote, but the accompanying statement was more balanced than some market participants had feared. Domestic inflation continues to slow: the Headline Index hovers around 3.63%, and the Core Index is around 4.24%, which expands the central bank’s room for maneuver.
European stock markets generally declined on Thursday. Germany’s DAX (DE40) fell by 1.31%, France’s CAC 40 (FR 40) closed down by 1.36%, Spain’s IBEX 35 (ES35) gained 0.12%, and the UK’s FTSE 100 (UK100) closed negative 0.42%. The German DAX Index dropped to a one-month low. Sentiment worsened amid renewed concerns about the overstretched valuations of AI-linked companies and the risk of a bubble forming in that segment. Investors were also assessing fresh corporate reports and macro data. German industrial production rose by 1.3% in September after a revised 3.7% drop the previous month, but the pace of recovery was weaker than the 3% consensus prognosis.
The Norges Bank (Central Bank of Norway) maintained its key interest rate at 4%, following a 25 bps cut at the previous meeting, which was in line with market expectations. The regulator noted that no new information has emerged since the September meeting that could significantly alter the expectations for the Norwegian economy. Core inflation remains around 3%, and unemployment has risen slightly. Policymakers stated that a restrictive policy remains warranted.
WTI crude oil prices dropped to the $59.3 per barrel area on Thursday, continuing their decline amid new pricing decisions by Saudi Arabia and persistent supply risks. Saudi Aramco lowered its official selling prices for Asian buyers. India, highly dependent on imports, is striving to diversify its sources of crude oil as sanctions risks complicate the purchase of Russian oil. Against this backdrop, even major refiner Reliance is reportedly reselling Middle Eastern oil cargoes – a move considered atypical.
The US natural gas prices (XNG/USD) rose to around $4.30 per million British thermal units (MMBtu), reaching a high since March. The increase was driven by near-record demand for LNG exports: the average gas flow to the eight largest terminals in November hit 17.4 billion cubic feet per day, surpassing the October record. Exports are expected to grow further as Europe continues to seek alternatives to Russian gas, and Asian buyers negotiate long-term supply deals with the US.
Asian markets saw solid gains yesterday. Japan’s Nikkei 225 (JP225) rose by 1.34%, China’s FTSE China A50 (CHA50) climbed by 1.21%, Hong Kong’s Hang Seng (HK50) gained 2.12%, and Australia’s ASX 200 (AU200) recorded a positive result of 0.30%.
On Friday, the offshore Chinese yuan weakened to around 7.12 per dollar, pulling back from the previous session’s gain as an unexpected contraction in Chinese exports amplified economic pressure. China’s exports in October 2025 declined for the first time in eight months, falling to the lowest level since February. Shipments to the US fell for the seventh consecutive month by more than 25%. Meanwhile, imports grew at the slowest pace since May and were significantly weaker than market expectations, signaling weak domestic demand and labor market uncertainty.
S&P 500 (US500) 6,720.32 −75.97 (−1.12%)
Dow Jones (US30) 46,912.30 −398.70 (−0.84%)
DAX (DE40) 23,734.02 −315.72 (−1.31%)
FTSE 100 (UK100) 9,735.78 −41.30 (−0.42%)
USD Index 99.70 −0.51% (−0.51%)