Technology stocks and emerging markets suffer heavy losses

Technology stocks and emerging markets suffer heavy losses

11 Nov 2026

Over $500bn was wiped from the market capitalisation of Google’s owner, Alphabet, in a single day towards the end of the month, with shares in the likes of Meta, Nvidia and Intel all losing ground as AI over-spending fears are reignited.

Read more in our market round-up and the latest news affecting UK investments.

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With technology stocks being a key driver of US market performance, global equities on the whole suffered as a consequence, but not to the extent that might be assumed. However, emerging market equities were especially badly hit by the sell-off, coupled with elevated US bond yields and a stronger US Dollar weighing heavily on investor sentiment and capital flows into emerging markets. This was compounded by a 20% fall in Brazil’s equity market after the surprise election win for President Lula da Silva. In contrast, UK equities enjoyed a decent month in October with relatively little exposure to technology stocks.

At the end of October, the Chancellor of the Exchequer, John Healy, presented his Autumn Budget. It was generally well received by markets but is set against a backdrop of wider macroeconomic challenges. One of the Chancellor’s key priorities was to ease some of the cost-of-living pressures that UK households are currently facing.

UK borrowing costs had risen to their highest level in almost 20 years in early October thanks to a global bond sell-off over inflation concerns. But Healy’s package of tax and spending plans reassured investors of a credible plan to bring down borrowing and debt in the UK. This saw the UK participating in the wider global bond rally with fixed interest and index linked gilts both posting strong returns over October. The notable exception to the wider global decline in bond yields was France, which has witnessed rioting and disorder in response to the cost of living crisis and public spending cuts.

Oil prices rose above $100 a barrel during October - and remained elevated at month end. Prices were driven higher by renewed fears of an escalation in tensions in the Strait of Hormuz ahead of the US mid-term elections.

Rising energy costs were a key driver of UK CPI inflation rising to 3.5% in the 12-months to September, up 0.4% from August’s 12-month print. The Bank of England subsequently voted to increase the Bank Rate by 0.25% to 4.0% at its early November meeting.

Despite its inflation challenges, the US economy continues to expand with annualised GDP growth reaching 3.4% in the third quarter of 2026, ahead of expectations. US inflation stands at 3.7% but the Federal Reserve voted to leave interest rates unchanged during October, maintaining a relatively hawkish policy stance.

Cryptocurrencies returned to the headlines in October for the wrong reasons as the world’s largest crypto exchange, Binance, was the subject of the largest theft of crypto assets on record. $6.3bn was stolen in a sophisticated attack with suspected links to North Korea, highlighting the unfamiliar nature of evolving risks associated with the new frontier of digital assets.

The rally in gilt markets served to increase the present value of UK DB pension scheme liabilities measured on a low-risk basis. Coupled with mixed performance across growth markets, aggregate funding levels are expected to have fallen modestly over the month but remain very healthy overall.

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