00:17Right after midterm elections in the US markets actually got a bit of a boost and that was for
00:23two reasons. We basically for one had kind of that added political certainty that we obviously
00:28didn't have before and then the second thing was that traders started to bet that there wouldn't
00:33be any more escalations in the Middle East conflict from the US which really pushed oil
00:39prices lower because people felt quite optimistic about that and that gave kind of markets a
00:45massive boost effectively initially.
00:59On Thursday that optimism kind of fell away a bit and we saw tech stocks, AI stocks, semiconductors
01:06really sell off in the US quite sharply. There's this index in the US, the Philadelphia Semiconductors
01:12Index that tracks those stocks and that sold off about 12% on Thursday and basically that
01:19came because traders started to get worried that after the Democrats sweep regularly scrutiny
01:25for AI would increase and also that it would be a bit more difficult to sort of build data
01:29centres and that basically then weighed on stocks in Europe in the tech sector and then also
01:37then overnight into kind of, you know, Friday in Asia so a lot of AI exposure in the US and
01:45Asia kind of so those, those markets got hit really heavily.
02:01But it's just when it's like intense exactly when you're sat there and you're like I haven't moved, I mean
02:07those other things are also just follow and consequences from that same thing.
02:11So far this morning in Europe, now that we're on Friday, it's looking a bit more relaxed you
02:20could say. So tech stocks have kind of steadied in Europe and the Nasdaq futures in the US which
02:26is a very tech heavy index there, they are actually up on the day but we don't really know where
02:33that's going and kind of if we look at a more broader view in Europe kind of across the board
02:39all other
02:40sectors are kind of now suffering. So there's this idea, this feeling that maybe we're getting
02:44a bit of a spillover from those tech worries into broader markets.
03:11From where we are now, obviously we had those really significant losses sort of overnight and again, things looking a
03:18bit brighter.
03:18This morning in tech specifically. And that kind of could mean that it was a short term blip and a
03:27kind of knee jerk reaction and everyone's kind of now realised, oh, maybe that was a bit overdone and it's
03:32kind of scaling back a bit.
03:33It also could just be a brief moment of recovery before everything starts falling again and people start selling again.
03:40So those are two options. The other option is that actually it could, we could see a bit of a
03:45boost today to tech stocks, especially in the US.
03:48People could buy the dip basically and kind of try and get in there whilst they think those stocks are
03:53a bit cheaper if they're still convinced that they're going to keep rising again.
03:56Or it could be something more like what we're seeing in Europe that that tech stock kind of issue is
04:03broadening out and kind of could actually weigh on markets more broadly.
04:28We'll see you next time.
