Nvidia and Alphabet Sell-Off Weighs on Global Equity Markets

Global equity markets delivered a mixed performance over the week as sell-offs in major US technology stocks, including Nvidia and Alphabet, weighed on investor sentiment, highlighting diverging regional trends amid softer inflation data, end-of-year portfolio adjustments, and shifting monetary policy expectations.

Investor sentiment remained fragile across markets, influenced by currency movements and growing concerns about a potential artificial intelligence bubble as corporate spending continues to rise, a theme that dominated discussions on Wall Street.

In the United States, major indices closed lower week on week, driven largely by weakness in technology stocks. The NASDAQ declined by 0.70%, while the S&P 500 slipped 0.57%, as investors assessed softer inflation readings and speculated on the timing of potential Federal Reserve interest rate cuts.

Analysts at Anchoria Securities Limited spotted profit-taking in high-growth names such as Nvidia, Alphabet, and Microsoft, noting that caution ahead of year-end portfolio rebalancing also contributed to the market pullback.

European equities, however, recorded gains, supported by optimism around easing inflation and expectations of continued monetary policy support. The FTSE 100 advanced by 1.46% week on week, Germany’s DE40 rose by 0.26%, and France’s FR40 added 0.14%. The broader Euro Stoxx 50 climbed by 0.60%, reflecting resilience across the region.

Market confidence was further underpinned by the European Central Bank’s decision to hold interest rates steady, maintaining its main refinancing rate at 2.15%. While acknowledging that inflationary pressures are easing, policymakers signalled caution against premature monetary easing.

This stance reassured investors that rate cuts could emerge later in 2026, helping to sustain risk appetite without fuelling market volatility. In Asia, sentiment was more subdued, with China’s FTSE index falling by 0.60% week on week amid ongoing concerns over property sector stress and sluggish economic recovery.

Persistent structural growth challenges and limited policy stimulus continue to weigh on Chinese equities, reinforcing a cautious outlook for the region as 2026 approaches.

Meanwhile, Nigeria’s equity market closed the week on a positive note, with the NGX All-Share Index extending its upward trend by 1.76% week on week to settle at 152,057.38 points.

Strong buying interest in blue-chip stocks such as BUAFOODS, BUACEM, NESTLE, FIRSTHOLDCO and GUINNESS offset declines in GTCO, PRESCO and NB, as market breadth improved to 1.56x, signalling broader positive sentiment across the exchange.

On a sectoral basis, five of the six sectors tracked ended the week in positive territory. Banking, Consumer Goods, Insurance, Industrial Goods and Pension stocks all recorded gains, while the Oil and Gas sector closed marginally lower.