US Government Reopens After Record Shutdown
The most significant financial news of the day was the official end of the record-setting US government shutdown. The reopening sparked initial optimism in markets, but this quickly gave way to volatility as investors digested the implications of delayed and potentially incomplete economic data. With backlogged reports such as the September jobs numbers set for release next week, and October figures possibly omitted or partial, uncertainty remains high regarding the true state of the US economy.
US Equity Markets: Tech-Led Selloff Amid Rate Uncertainty
US equity markets experienced a sharp correction, reversing earlier gains. The S&P 500 fell by 1.7%, with the tech-heavy Nasdaq suffering a steeper 2.3% decline. The selloff was especially pronounced in mega-cap tech stocks, reflected in a 2.7% drop in the Bloomberg Mag7 index. This correction was driven by ongoing concerns about inflated tech valuations and the risk of overbuilding in artificial intelligence sectors. Profit-taking further exacerbated declines in leading technology names.
Interest rate expectations also shifted dramatically. The probability of a Federal Reserve rate cut at the December meeting dropped to a near-even 50%, down from about 70% just two weeks prior. Hawkish commentary from regional Fed presidents and the lack of fresh economic data contributed to the uncertainty. The US Treasury yield curve steepened, with longer-term yields rising as traders repriced the path of monetary policy.
European and UK Markets: Broad Declines and Policy Shifts
European equities mirrored the negative sentiment in the US, with the Stoxx 600 index falling 1.2%. All sectors ended in the red, led by a 2.8% decline in technology stocks after a disappointing earnings report from a major chip-equipment maker. Banking shares and regional bourses also traded lower.
In the UK, financial markets reacted to Chancellor Reeves’ decision to abandon planned income tax hikes. This move raised concerns about fiscal discipline and pushed gilt yields higher, while the pound and UK equities fell. The Bank of England’s next policy move remains uncertain, with markets slightly reducing expectations for a December rate cut.
Asian Markets: Weak Chinese Data and Japanese Reform Risks
Asian markets were also under pressure. Japan’s Nikkei 225 dropped 1.8%, weighed down by worries about high valuations in the AI sector and uncertainty surrounding Prime Minister Takaichi’s proposed corporate governance reforms.
Chinese equities declined as well, with the CSI300 index down 1.6%. The drop followed the release of weak economic data: fixed-asset investment fell by 1.7% in the first ten months of the year—a record decline—while industrial output growth also disappointed. These figures reinforced concerns about the sustainability of China’s economic recovery and the effectiveness of recent policy measures.
Commodities and Currency Markets: Oil Rebounds, Pound Weakens
Oil prices rebounded sharply, with Brent crude trading above $64 and WTI above $60 per barrel. The rally followed warnings from the International Energy Agency that new US sanctions on Russian companies could threaten Russia’s oil production and disrupt global supply.
In currency markets, the pound traded lower against the dollar, reflecting investor unease over UK fiscal policy. The euro also weakened, while emerging market currencies such as the Colombian peso saw mixed performance.
Outlook: Data Delays and Policy Uncertainty
The global financial landscape remains clouded by uncertainty. Investors are closely watching for the release of delayed US economic data, which could provide much-needed clarity on growth and inflation trends. The Federal Reserve’s December rate decision is now seen as a coin toss, and the upcoming earnings reports—particularly from tech giants like Nvidia—may play a pivotal role in shaping market sentiment in the weeks ahead.
Overall, November 13, 2025, was marked by heightened volatility, broad-based equity declines, and a cautious outlook as markets grapple with policy uncertainty and mixed economic signals from the world’s largest economies.