Global Markets Decline After Fed Chair Warns Against Rate Cuts

Global financial markets adopted a cautious stance on Thursday, with the FTSE 100 and US tech futures declining. The downturn followed comments from Kevin Warsh, Chair of the US Federal Reserve, who stated that inflation remains too persistent to justify imminent rate cuts.

This outlook triggered a sell-off in semiconductor and technology stocks, including Nvidia, AMD, and Micron, as investors questioned the immediate returns on artificial intelligence capital expenditures. Investors remained hesitant while awaiting the US non-farm payrolls report, reacting to the prospect of elevated interest rates lasting longer than previously anticipated.