Bonds & Stocks
The selloff in US stocks extended into Friday as fears of a hawkish pivot by the Federal Reserve fueled a continued retreat from risk. Technology stocks were again at the forefront of the US decline, with Nasdaq 100 futures down 1.6%. The S&P 500 was on course for its first back-to-back weekly loss since June. The Cboe Volatility Index climbed above 22. The Magnificent Seven all retreated in premarket trading as doubts over an interest-rate cut in December deepened concerns about stretched valuations. Tesla Inc. and Nvidia Corp. dropped 4.2% and 3%, respectively. Bitcoin sank to a six-month low.
Economy
US President Donald Trump is readying substantial tariff cuts designed to address high food prices and a series of new trade deals — including framework agreements with Argentina, Guatemala, El Salvador and Ecuador — as he seeks to address voter concerns over the cost of goods. The push comes after electoral victories for Democrats last week across a number of key state and local races where candidates stressed affordability concerns. Trade deals with Latin American countries unveiled Thursday will see the US reduce tariffs and barriers on common grocery items like beef, bananas, and coffee beans in a push to lower grocery bills that have for years frustrated Americans.
World
It’s been a bruising week for Google here in Europe. And there doesn’t seem to be any letup in the European Commission’s years-long fight against one of the world’s most powerful companies. The Mountain View, California-based tech giant today defied calls from EU regulators to break off a chunk of its hugely profitable ad-tech branch. The defiance followed a near-€3 billion fine in September – and may have been bolstered by open criticism of the EU’s move by US President Donald Trump. Europe’s watchdogs allege that Google abused its dominance by giving its own ad exchanges an unfair and anticompetitive advantage.