Global Markets Turbulence: Layoffs Reach Peak

US Markets Face Consecutive Losses

Recent developments indicate that in October, the US experienced the highest layoffs in 20 years. This situation, combined with concerns over artificial intelligence valuations, negatively affected Wall Street markets.

In particular, the Nasdaq 100 index closed Thursday down 1.9 percent, while the S&P 500 index also increased its losses to 1.1 percent. Forward-looking stock futures are signaling that losses may continue.

Decline in Asian Markets

The losses were also felt in the Asian stock markets. The MSCI Asia Pacific Index fell 1.3 percent, with the index expected to close its worst week since early August. The MSCI All Countries World Index is also poised to end the week with a decline for the first time in four weeks.

Concerns in the Markets and Bond Yields

Dave Lutz from Jonestrading commented, “Markets are still concerned about valuations of artificial intelligence stocks. Semiconductor stocks are under significant pressure, causing investors to shift towards bonds.”

In this context, the 10-year treasury yield in the US fell eight basis points on Thursday to trade at 4.0831 percent. In Asian trading, this yield started trading at 4.0928 percent.

Global Layoffs are Increasing

In line with artificial intelligence and cost-cutting measures, companies in the US reported the highest layoff figures for October in more than twenty years. According to Challenger, Gray & Christmas Inc. data, last month saw 153,074 layoffs, nearly three times the number from the same month last year.

As some sectors enter a correction phase post-pandemic, the proliferation of artificial intelligence applications, a decrease in consumer and corporate spending, and rising costs have contributed to the layoffs. The report indicates that those currently laid off are struggling to find new jobs, which could further loosen the labor market.

This year, it is stated that layoffs have exceeded 1 million people, and Challenger emphasized that while the likelihood of companies hiring may increase as the year comes to a close, there is not a strong employment outlook for 2025.