Your Weekly Market Wrap-Up

2nd - 6th November 2026

Global Highlights

U.S. Markets

U.S. stocks declined despite Friday’s technology rebound. An initial post-election rally reversed as investors worried about tighter AI regulation and infrastructure spending. Stronger-than-expected employment data also reinforced concerns about further Federal Reserve rate hikes.

European Markets

European markets experienced a volatile week. Improved trade expectations and lower energy prices initially supported sentiment, before the U.S. technology sell-off spread globally. A Bank of England rate hike and hawkish European Central Bank commentary added pressure.

Asian Markets

Asian technology shares came under heavy pressure as investors reassessed AI spending and potential U.S. restrictions. Japan’s Nikkei plunged 5.96% on Friday, entering bear-market territory. Chinese and Hong Kong stocks also fell that day, although improved trade expectations following the U.S. elections had supported regional markets earlier in the week.

Weekly Spotlights

Regulation was the week’s central theme. An initial rally following the U.S. midterm elections faded as concerns emerged that tighter rules could slow data-centre construction and AI investment. Semiconductor stocks rebounded on Friday, but the gains were insufficient to offset the week’s losses. Market strategists noted that the sector’s strong outperformance since early 2023 has left it particularly sensitive to shifts in expectations about the pace and profitability of AI investment.

Market Performance

Asset Name Weekly Closing Level Weekly % Return
S&P 500 7,376.86 -2.18%
DJIA (Dow Jones) 51,285.73 -1.34%
Nasdaq Composite 24,579.43 -2.32%
Nikkei 225 57,435.00 -9.25%
FTSE 100 10,673.94 -0.81%
Shanghai Composite 3,649.30 0.90%
Sensex (BSE) 80,999.40 7.01%
ADX Index (UAE) 9,392.60 -1.03%
Gold 4,074.70 4.40%
Brent Oil (USD/bbl) 97.75 -13.35%

Outlook

We remain constructive on equities while monitoring the technology rebound, policy developments, and interest rates. Resilient growth supports earnings but may keep borrowing costs elevated, favouring quality businesses with strong balance sheets and diversified revenues. We emphasise diversification across sectors, regions, and styles, including value and defensive investments. Meaningful corrections may offer opportunities to gradually increase exposure to quality equity funds at attractive valuations, consistent with clients’ objectives and risk tolerance. Within fixed income, we favour shorter-duration investment-grade bonds for income and relative stability.

Need Help Navigating the Next Half?

Let our investment specialists help you tailor your portfolio for what’s ahead.

Get started →

Disclaimer

This commentary is provided for informational purposes only and does not constitute investment advice. For detailed insights, contact our investment team.