# Daily Market Brief: What to Expect Today
**A risk-off sentiment is sweeping through global markets this morning, with stocks extending their recent slide and the US dollar asserting its dominance as a safe-haven asset. Investors are grappling with a confluence of factors, including concerns about stretched valuations in the tech sector, a reassessment of the Federal Reserve’s interest rate path, and a slate of crucial economic data and corporate earnings reports due this week.**
## Stock Markets Brace for Further Declines
Following a sharp selloff on Monday that saw the Dow Jones Industrial Average tumble over 550 points, stock futures are pointing to another negative open for Wall Street. As of early Tuesday, futures for the S&P 500, Dow, and Nasdaq are all trading in the red, signaling that the bearish momentum is likely to continue. The CBOE Volatility Index (VIX), often referred to as the market’s “fear gauge,” has surged over 12%, reflecting the heightened sense of anxiety among investors.
The negative sentiment is not confined to the US. Asian markets experienced a significant downturn overnight, with Japan’s Nikkei 225 and South Korea’s Kospi both plunging over 3%. This global selloff is being driven by several key factors:
* **Tech Sector Woes:** The technology sector, which has been the primary engine of this year’s market rally, is now leading the decline. All eyes are on Nvidia’s (NVDA) upcoming earnings report on Wednesday, which is seen as a critical test for the AI-fueled boom.
* **Valuation Concerns:** After a strong run-up in 2025, many mega-cap growth stocks are trading at lofty valuations, making them susceptible to a correction.
* **Fed Rate Cut Uncertainty:** Hopes for a December interest rate cut from the Federal Reserve are fading. The market is now pricing in only a 40% chance of a cut, down from over 90% a month ago. The release of the Fed’s October meeting minutes on Wednesday and the delayed September jobs report on Thursday will be closely scrutinized for clues about the central bank’s next move.
| Market | Performance (Nov 18 Morning) |
| ————— | —————————- |
| S&P 500 Futures | -0.71% |
| Dow Futures | -0.49% |
| Nasdaq Futures | -0.92% |
| Nikkei 225 | -3.00% |
| Kospi | -3.10% |
## Forex Markets: King Dollar Reigns Supreme
The risk-off mood has sent investors flocking to the safety of the US dollar, which has strengthened against most major currencies. The US Dollar Index (DXY) is consolidating near its recent highs, and the greenback is the top-performing currency this week.
Here’s a look at how major currency pairs are faring:
* **EUR/USD:** The euro is under pressure, with the pair trading around 1.1600. The bearish outlook for the single currency is being exacerbated by the overall risk-off sentiment.
* **USD/JPY:** The yen has weakened significantly, with the pair holding steady around 155.00. The yen has also hit a multi-decade low against the euro, driven by the Bank of Japan’s ultra-loose monetary policy and concerns about Japan’s fiscal situation.
* **AUD/USD:** The Australian dollar has been hit hard by the risk-off mood, with the pair trading below 0.6500. The Reserve Bank of Australia’s latest meeting minutes indicated a willingness to keep rates on hold, but the currency remains vulnerable to a global growth slowdown.
* **GBP/USD:** The British pound is also struggling, with the pair subdued around 1.3150. The pound is facing headwinds from the UK’s uncertain economic outlook and recent fiscal policy announcements.
In other markets, gold has surprisingly failed to catch a safe-haven bid, with the precious metal declining for a third consecutive day. Cryptocurrencies have also been caught in the selloff, with Bitcoin briefly dipping below $90,000.
**In conclusion, traders and investors should brace for a volatile day. The stock market is likely to remain under pressure, while the US dollar is expected to maintain its strength. All eyes will be on the upcoming economic data and corporate earnings reports, which will provide further clues about the health of the global economy and the future path of monetary policy.**
### References
[1] [Stock market today: Dow, S&P 500, Nasdaq futures slump after stock slide deepens ahead of Nvidia earnings, jobs data](https://finance.yahoo.com/news/live/stock-market-today-dow-sp-500-nasdaq-futures-slump-after-stock-slide-deepens-ahead-of-nvidia-earnings-jobs-data-012021297.html)
[2] [Forex Today: Market mood sours as investors reassess Fed rate outlook](https://www.fxstreet.com/news/forex-today-market-mood-sours-as-investors-reassess-fed-rate-outlook-202511180639)
