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Tech-Led Rally Stalls as Valuation Jitters and U.S. Policy Uncertainty Hit Global Stocks

Investor caution deepens on valuation strains under a prolonged U.S. shutdown.

Overview

  • Global equity benchmarks fell Tuesday across Europe, Asia and the U.S. as profit-taking erased part of recent AI-fueled gains.
  • Expectations for a December rate cut faded after Federal Reserve signals that further easing is not assured, pushing investors to reassess richly priced tech leaders.
  • The U.S. government shutdown reached day 36, delaying key economic releases such as jobs data and forcing heavier reliance on private indicators.
  • Large AI tie-ups still moved individual names, with Amazon boosted by OpenAI’s $38 billion capacity purchase and Nvidia supported by U.S. approval to export chips to the UAE, even as Palantir slid on valuation worries.
  • Company-specific news injected further volatility, including Nokia’s plan to delist from Paris, Bouygues securing Sizewell civil works in the UK, and Edenred falling on guidance and Italy’s cap on restaurant-ticket fees.