November 5, 2025 — U.S. equity futures led a global market selloff yesterday, with Nasdaq 100 futures sliding over 1.5%. The U.S. dollar index surged past the 100 mark, reaching a three-month high. Cryptocurrencies were hit hard — Bitcoin plunged to $103,600, the lowest level since June. Even safe-haven assets failed to hold up: spot gold fell below $3,980, and crude oil dropped more than 1%. Market sentiment is now dominated by the fierce tug-of-war between “valuation bubble deflation” and “policy path reconstruction.”

U.S. and Global Equities: Tech Valuation Panic Spreads Across Regions

Nasdaq 100 futures fell 1.53%, S&P 500 futures 1.13%, and Dow futures 0.5%.

European stocks slumped — Germany’s DAX dropped 1.8%, France’s CAC 40 lost 1.7%.

In Asia-Pacific, markets tumbled — Japan’s Nikkei 225 retreated 1.7% from record highs, while South Korea’s KOSPI fell 2.4%.

Stock Highlights:

AI stocks plunged: Palantir fell 6% after earnings (despite record revenue); Nvidia and TSMC each lost about 1%.

Chinese ADRs under pressure: Alibaba and NIO dropped more than 2%, as tightening liquidity weighed on risk appetite.

Key Drivers:

Valuation bubble concerns: CEOs of Goldman Sachs and Morgan Stanley warned that tech stocks are overvalued and could face a 10–20% correction.

Policy uncertainty: Fed officials sent mixed messages — Goolsbee sounded hawkish, while Milan struck a dovish tone — cutting the odds of a December rate cut to below 65%.

FX Market: Dollar Index Breaks 100, Yen Weakens to 154.48

Strong dollar: The U.S. Dollar Index rose 0.03% to 99.90, intraday topping 100 for the first time in three months.

Yen weakness: USD/JPY hit 154.48, the weakest since February 13, as widening rate differentials persisted.

Euro softness: EUR/USD slid to 1.1498, its lowest since August 1, as expectations strengthened for the ECB to remain on hold.

Underlying logic: Solid U.S. economic resilience (manufacturing PMI contracted but beat expectations) and hawkish Fed rhetoric continue to support the dollar.

Commodities: Gold Slips Below $3,980, Oil Weakens on Supply-Demand Worries

Precious metals: Spot gold fell 0.3% to $3,980, marking a third consecutive daily loss; silver dropped 1% to $47.56.

Headwinds: A stronger dollar and rising real yields offset demand from geopolitical risk.

Energy: WTI crude fell 1.4%, dipping below $60; Brent crude also declined.

Bearish mix: OPEC+ paused production hikes, but demand concerns grew as EIA data showed a 500,000-barrel inventory build (vs. expected drawdown).

Crypto: Bitcoin Hits Five-Month Low as Leveraged Longs Liquidated

Massive selloff: Bitcoin fell nearly 3% to $103,600; Ethereum slid over 3% to $3,480; altcoins like Solana and BNB dropped more than 5%.

Total liquidations: $1.2 billion in positions were wiped out across the market within 24 hours.

Fundamentals:

Regulatory overhang: The U.S. SEC tightened scrutiny on stablecoins, while China’s central bank reaffirmed its crackdown on crypto speculation.

Liquidity squeeze: Bitcoin spot ETFs saw four straight days of outflows totaling $1.8 billion, with open interest down 30% from peak levels.

Today’s focus:

China: October trade balance;

U.S.: EIA crude oil inventory data;

Fed speakers: New York Fed President John Williams — watch for comments on inflation stickiness;

China International Import Expo: Premier Li Qiang’s keynote speech may boost foreign investor sentiment if he signals further market opening;

PBOC liquidity operations: ¥700 billion in reverse repos maturing — the scale of rollover will indicate liquidity stance.