Global markets hit by "Black Friday" as hawkish Fed comments dash hopes for rate cuts

BlockBeats News, November 14 — Hawkish signals from Federal Reserve officials have dashed market hopes for a US rate cut in December. Combined with an ongoing chaotic data calendar and concerns over an artificial intelligence bubble, global stock and precious metals markets suffered heavy losses on Friday.

Blue-chip markets from Tokyo to Paris and London all saw significant declines, with new concerns over the upcoming UK budget exacerbating the pain in British markets. US stock index futures indicated a gloomy opening for Wall Street, after a sharp drop on Thursday.

Jeremy Stretch, Head of FX Strategy at CIBC Markets, said: "Our expectations for a December rate cut are now back to a 50-50 chance. This, combined with concerns about an artificial intelligence bubble, has undermined market sentiment stability, and market sentiment has become volatile this month."

Meanwhile, the White House dashed market hopes for a clearer picture of the US economic situation anytime soon, stating that US unemployment data for October may never be available. This has reinforced the view that the Federal Reserve may pause action until more definitive information is obtained.