Trader angst pivots from inflation to growth as tech rout deepens

The Globe and Mail · Dhara Ranasinghe and Karin Strohecker · 2026-11-06 15:18 UTC

Selloff reducing market bets on Fed and ECB rate hikes in December

The rout in tech stocks further clouds the outlook for a global economy bolstered by the AI boom, leaving traders questioning whether central banks will have scope for further interest rate hikes to contain an Iran war-induced energy price surge.

Market bets on the U.S. Federal Reserve and European Central Bank raising rates in December were less confident on Friday, a day after the tech-led Nasdaq index suffered its deepest one-day drop since the April 2025 “Liberation Day” drubbing.

The selloff, wiping out trillions in market value, came after U.S. Democrats swept midterm elections, adding fears of greater AI scrutiny and curbs on data centre construction to concerns about the huge cost of the AI build out.

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