Global markets experienced a turbulent week as investors juggled geopolitical uncertainty, shifting sector dynamics and the early stages of Q4 earnings season.

In short:
Money kept moving away from big tech into smaller companies.
The Russell 2000 outperformed for a tenth straight session while most of the Mag 7 declined. Importantly, more than 300 S&P 500 stocks were higher despite index weakness, showing a shift away from concentrated market leadership.

Economic data supported a ‘resilient but uneven growth’ narrative.
The U.S. job market remains solid and growth in the UK and Germany surprised on the upside. China met its growth target, but mainly through exports, with consumer spending still weak.

Early earnings showed profits are holding up, but valuations are under scrutiny.
Big U.S. banks reported decent results, but their share prices barely moved as investors focused on costs and the outlook. A strong result from TSMC was a bright spot for technology stocks.

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