Global stock markets slipped Friday as losses in major technology shares dragged Wall Street lower overnight, while investors awaited fresh economic signals amid the ongoing U.S. government shutdown.
European shares opened weaker, following declines in Asia. Germany’s DAX edged down 0.1%, France’s CAC 40 was flat at 7,965.31, and Britain’s FTSE 100 dropped 0.4% to 9,696.82. U.S. futures, however, showed mild gains, with the S&P 500 up 0.3% and the Dow Jones Industrial Average rising 0.2%.
In Asia, Japan’s Nikkei 225 fell 1.2% to 50,276.37 after a week of volatile trading. China reported its exports shrank 1.1% in October, with shipments to the U.S. plunging 25% from a year earlier. Economists, however, expect exports to rebound following the recent agreement between President Donald Trump and Chinese President Xi Jinping to ease trade tensions.
Hong Kong’s Hang Seng index lost 0.9% to 26,241.83, Shanghai’s Composite slipped 0.3% to 3,997.56, South Korea’s Kospi dropped 1.8% to 3,953.76, and Taiwan’s Taiex was down 0.9%. Australia’s S&P/ASX 200 declined 0.7% to 8,769.70.
Technology stocks continued to weigh heavily on Wall Street, with the S&P 500 falling 1.1%, the Dow dropping 0.8%, and the Nasdaq tumbling 1.9% on Thursday. Nvidia fell 3.7%, Microsoft 2%, and Amazon 2.9%, pulling the broader market down.
Tesla shares fluctuated after shareholders approved a compensation plan that could earn CEO Elon Musk stock worth $1 trillion if performance targets are met. After initial losses, Tesla rose in after-hours trading to close at $445.91.
Corporate earnings remained the key focus, as the government shutdown has delayed key economic data on inflation, jobs, and retail sales. DoorDash tumbled 17.5% after warning of higher development spending next year, while CarMax plunged 24.3% following a weak earnings update and the announcement that its CEO will step down in December.
In contrast, Datadog surged 23.1% after beating earnings forecasts, and Rockwell Automation rose 2.7% on strong results.
Despite a record-breaking year for equities, analysts warn valuations may be overstretched — especially among tech giants leading the rally fueled by enthusiasm over artificial intelligence.
Meanwhile, the Federal Aviation Administration said it will cut U.S. air traffic by 10% across 40 major markets starting Friday due to staffing shortages caused by the shutdown. Shares of American, Delta, and United Airlines all slipped between 1% and 2%.
In commodities, U.S. benchmark crude rose 66 cents to $60.09 per barrel, while Brent crude gained 65 cents to $64.03. The dollar strengthened to 153.48 yen from 153.06 yen, and the euro eased to $1.1537.