⚡ Key numbers:
- 102.28 – level of the US Dollar Index (DXY) after a 0.72% gain
- 3.4% – weekly drop logged by the tech-heavy Nasdaq Composite
- 10% – threshold below its recent high crossed by the Nasdaq, marking a market correction
- $9.6 billion – Berkshire Hathaway share buybacks executed during the third quarter
- 7377 – closing level of the S&P 500 index after a 0.31% Friday gain
Top-rated brokers
Full forex broker ranking →
Tech rout tests Wall Street confidence
The tech-heavy Nasdaq Composite slid 3.4% this week, with heavy selling on Thursday pushing the index more than 10% below its most recent peak. Doubts regarding whether heavy capital spending on artificial intelligence data centers will generate expected returns have started to unnerve portfolio managers.
The market reset is already reshaping private market expectations. Investors in Claude developer Anthropic have scaled back valuation estimates for its upcoming public debut by up to 50% compared to figures circulating in October.
Inflation numbers to dictate Federal Reserve policy path
Against this backdrop of equity volatility, the incoming US CPI inflation report will serve as a critical gauge for interest rate expectations. Analysts at Goldman Sachs previously highlighted that policy expectations remain sensitive to any hawkish tilt from central bankers.
Foreign exchange desks moved quickly to price in macro risks, lifting the US Dollar Index up 0.72% to 102.28. The euro retreated against the greenback, leaving EUR/USD lower at 1.1143 as traders favored safety ahead of the inflation release.
Defensive rotation favors Berkshire Hathaway
As high-flying tech valuation multiples contracted, capital flowed into classic value plays. Shares of Berkshire Hathaway advanced to fresh record highs, outperforming the S&P 500 year-to-date after trailing the benchmark earlier in the autumn.
Berkshire revealed that it repurchased $9.6 billion of its own stock last quarter while managing exposure to broader market swings. Meanwhile, tech executives face regulatory scrutiny from Democrats preparing to take control of both congressional chambers with plans to probe AI energy consumption and model liability.
What to watch next
- Release of the US Consumer Price Index report and its impact on Treasury yields
- Filings detailing Berkshire Hathaway portfolio changes and tech holdings
- Opening price action on major Wall Street index futures on Monday morning
Frequently asked questions
What drove the recent sell-off in technology equities?
Investors grew wary over the massive capital expenditure required for AI data centers and reacted to Democratic proposals in Congress aimed at testing models and curbing data center electricity costs.
How does the tech pullback affect upcoming IPOs?
Anthropic investors have reduced their valuation targets for the company's planned market debut by up to 50% from levels discussed in October.
Where does the US dollar stand ahead of the CPI data?
The US Dollar Index ended the week at 102.28 points, reflecting a 0.72% gain, while EUR/USD dropped to 1.1143.
Sources: Comparic, CNBC, MarketWatch, Yahoo Finance.
Disclaimer: This article is for information purposes only and does not constitute investment advice. Data as of Nov 8, 2026, 18:10 may vary by source. Trading leveraged CFDs carries a high risk of losing money.
