Titan Wealth International Weekly Financial Market Review

Investors balanced strong corporate earnings against growing macroeconomic uncertainty and shifting central bank signals.

Tech-Led Equity Pullback

Global equity markets fell last week as the rally in mega-cap technology stocks faltered, dragging down broader indices and injecting a dose of volatility into markets that had otherwise been buoyed by optimism over monetary easing and earnings resilience.

Earnings Season Resilience

In the US, third-quarter earnings season neared its conclusion, with roughly 85% of S&P 500 companies having reported results as of Thursday.

The overall picture remained encouraging: 82% of companies beat analyst expectations, above the five-year average of 78%, leaving the index on track for earnings growth of around 12%—marking a fourth consecutive quarter of double-digit expansion.

Technology continued to lead the charge, with the sector posting 22% growth. The so-called “Magnificent Seven” (Amazon, Apple, Meta, Alphabet, Microsoft, Nvidia, and Tesla) once again outperformed, with several raising profit and AI investment guidance.

Yet, profit-taking among investors saw the group lead declines later in the week, dampening overall sentiment.

US Economic Concerns

Away from earnings, the protracted US government shutdown entered its sixth week, delaying the release of key economic data, including the monthly jobs report. In its absence, private-sector surveys highlighted signs of a cooling labour market.

Challenger, Gray & Christmas reported 153,000 job cuts in October—nearly triple September’s total—while ADP data showed only 42,000 private-sector jobs created, below expectations.

Meanwhile, consumer sentiment fell sharply, with the University of Michigan’s index nearing its lowest level on record, fuelling concerns about the durability of the US economic expansion.

Bank of England Holds Rates

In the UK, the Bank of England voted narrowly (5–4) to keep its key policy rate unchanged at 4.0%. Governor Andrew Bailey hinted that rate cuts may come as soon as December, describing market pricing for a terminal rate of around 3.5% over the next three years as “a fair description of my position.”

Domestic economic conditions remain soft, with growth stagnating and inflation yet to convincingly decline.

Market Performance and Sector Moves

Market performance reflected these crosscurrents. US equities fell nearly 2% for the week, led by a 3% decline in technology shares amid fading AI enthusiasm.

European equities tracked the US lower, down roughly 1%, while UK stocks proved more resilient, slipping just 0.4%.

Asian markets were mixed: Chinese equities rose over 1%, supported by improved trade relations with the US, while Japanese stocks slumped 4% as yen strength weighed on exporters.

Commodities and Crypto

In commodities, oil prices extended their decline, even after OPEC+ confirmed a smaller-than-expected output increase of 137,000 barrels per day in December and no changes through Q1 2026.

US crude briefly dipped below $57 per barrel before stabilising.

Bitcoin fell sharply early in the week, dropping below $100,000 for the first time in six months before recovering to around $103,500 by Friday.