Market Turmoil Grips Global Exchanges as "Black Friday" Rout Reflects Fed's Hawkish Stance

When are markets open on Black Friday becomes less relevant when the selling pressure shows no mercy across global bourses. On Friday, equity indices from London to Tokyo faced sharp selloffs, as comments from Federal Reserve policymakers extinguished hopes for a December interest rate cut, triggering a cascade of losses across stocks and precious metals.

The shift in Fed expectations has proven decisive. Jeremy Stretch, FX Strategy Head at CIBC Markets, noted the dramatic pivot: “The probability of a December rate cut has dropped to a coin flip at 50-50. Combined with mounting concerns about an artificial intelligence valuation bubble, this has severely rattled investor confidence. Market sentiment has become decidedly unstable.”

Blue-chip indexes across major financial centers posted notable declines, with London particularly pressured by fresh anxieties surrounding the UK’s forthcoming budget announcement. Wall Street futures are signaling weakness ahead of the opening bell, extending Thursday’s already severe decline. The sell-off reflects a broader unease about economic fundamentals.

Compounding these challenges, the White House has indicated that crucial October employment data for the United States may never be released to the public. This information void threatens to delay Federal Reserve decision-making until clearer economic signals emerge. Without definitive labor market readings, policymakers face heightened uncertainty—a scenario that has only intensified the market’s already fragile state.

The convergence of hawkish Fed rhetoric, artificial intelligence bubble concerns, and data uncertainty has created a perfect storm for financial markets. As traders reassess their December rate-cut wagers from a decidedly more pessimistic vantage point, global equities face continued headwinds from this shifting policy landscape.