On Thursday, the US stocks came under heavy selling pressure. The Dow Jones Index (US30) fell by 0.84%. The S&P 500 Index (US500) dropped 1.56%. The Nasdaq (US100) closed down 2.38%. Market participants increased expectations that the Federal Reserve may maintain a hawkish stance on rates. The shift in sentiment was driven both by reassessment of risks around lofty valuations of AI‑related companies and by new data confirming labor market resilience. The delayed employment figures, the last before the December FOMC meeting, showed a larger‑than‑expected increase in jobs, reinforcing expectations that rates will remain unchanged next month.

The technology and AI sector was again in the spotlight. Nvidia shares fell by 3.2%, despite gaining about 5% at the open. The company reported results that beat expectations and highlighted steady demand for AI infrastructure. However, its comment that a $100 billion contract with OpenAI was not guaranteed heightened investor concerns that the data‑center market may be overheated. Against this backdrop, AMD, Micron, and Oracle shares dropped 6-11%. Walmart rose by 6% after posting strong quarterly results and raising its annual projections, supporting the retail sector.

The Canadian dollar weakened to 1.41 per US dollar. Gains sparked by budget approval quickly faded as fundamentals remained weak. Bank of Canada officials again stressed the need for broad structural measures to boost productivity, noting that tighter US trade barriers increase risks for Canada’s economy, which already shows signs of slowing. The commodity market also failed to support the loonie, as oil prices fell after industry data showed US crude inventories rose by about 4.4 million barrels and seaborne stocks climbed to record levels. This deprived the Canadian currency of a key external driver.

Bitcoin fell to $85,000, its lowest level since April, as the global sell‑off in tech stocks, driven by renewed concerns about the AI sector, spread to other risk assets, including digital assets. Correlation between Bitcoin and the tech sector rose to a six‑month high of 80%, highlighting the leading digital assets’ departure from their supposed role as a “safe haven” during market uncertainty.

European stocks recovered slightly on Thursday. Germany’s DAX (DE40) rose by 0.50%, France’s CAC 40 (FR40) closed up 0.34%, Spain’s IBEX 35 (ES35) gained 0.63%, and the UK’s FTSE 100 (UK100) rose 0.21%. European equities ended Thursday with sharp gains, following the rebound in global markets after Nvidia’s strong earnings eased concerns about excessively high valuations of tech companies. Against this backdrop, European firms linked to data‑center infrastructure led the rally: Siemens, Schneider Electric, and ASML all closed firmly higher.

WTI crude oil prices fell to $58 per barrel on Friday, declining for the third consecutive day. The US sanctions against Rosneft and Lukoil took effect. The new measures could force up to 48 million barrels of Russian oil to remain at sea due to restricted access to buyers and logistics channels. Indian refiners, which in recent years relied on discounted Russian oil supplies, are already beginning to seek alternative sources.

Asian markets mostly rose yesterday. Japan’s Nikkei 225 (JP225) gained 2.65%, China’s FTSE China A50 (CHA50) rose by 0.41%, Hong Kong’s Hang Seng (HK50) edged up 0.02%, while Australia’s ASX 200 (AU200) closed positive 1.24%.