Amazon sinks as US layoffs pressure Fed expectations

Amazon shares slumped sharply after projecting a major rise in capital spending, dragging big tech lower. Global equities extended losses as mounting US layoffs intensified bets that the Federal Reserve could ease policy soon, even as markets brace for a delayed jobs report amid a government shutdown. Europe was mixed with FTSE futures weaker and DAX steadier, while Wall Street’s selloff rippled into Asia; bitcoin and silver rebounded from steep prior drops.

Equities

The FTSE 100 closed lower on Thursday, ending the session down 0.9% after easing back from the record high reached a day earlier. The decline followed a cautious reaction to the Bank of England’s latest policy decision, where rates were held at 3.75% after an unexpectedly narrow 5–4 vote. Investors focused closely on the central bank’s guidance that borrowing costs could be cut in coming months if inflation continues to cool, a signal that weighed on interest-rate-sensitive stocks into the close. The more domestically focused FTSE 250 also finished lower, down 1% by the end of trading.

Within the UK market, banking stocks led declines. Shares in HSBC, Lloyds Banking Group and NatWest Group all closed sharply lower on Thursday as investors reassessed the outlook for net interest margins in a lower-rate environment. In the commodities space, Rio Tinto fell late in the session after confirming it had abandoned takeover talks with Glencore, sending Glencore shares down heavily by the close. Energy stocks also weighed on the index, with Shell ending the day lower after reporting quarterly profits that missed expectations, reflecting weaker crude prices and thinner margins.

In contrast, parts of the UK technology sector recovered ground late on Thursday. RELX closed higher after recent weakness, while London Stock Exchange Group also finished the session firmly up, offering some balance to broader losses across the market.

In the United States, Wall Street closed sharply lower on Thursday as technology stocks remained under pressure. The S&P 500 fell 1.23% by the closing bell, while the Nasdaq Composite ended down 1.59%, closing at its lowest level since November. The Dow Jones Industrial Average also finished lower, down 1.20%.

Heavy selling continued among large US technology companies. Microsoft closed significantly lower, while Alphabet fell after outlining plans for a sharp increase in capital spending on artificial intelligence. Amazon dropped during regular trading and then slid further in after-hours trade after projecting substantially higher investment spending for 2026. Elsewhere, Oracle and Palantir both ended the session deeply lower, adding to pressure on the wider software sector.

Away from technology, Estee Lauder shares fell heavily after the company forecast annual results below expectations, while Qualcomm closed sharply down following a cautious revenue outlook. By contrast, Tapestry and Hershey both finished higher after issuing stronger profit forecasts, offering rare pockets of support in an otherwise broad US sell-off.

Forex & Commodities

The US dollar held near a two-week high early, supported by a pullback from riskier assets and continued reassessment of US monetary policy. The dollar index eased slightly but remained close to recent peaks, while the greenback traded at 156.8 against the Japanese yen as Asian markets opened. The yen firmed modestly ahead of Japan’s national election on Sunday, following weeks of pressure that had left it near an 18-month low. Currency traders remain alert to the risk of official action should weakness resume.

Sterling traded higher late on Thursday and into early Friday, changing hands at 1.358 against the dollar after recovering some ground lost earlier in the week. The move followed the Bank of England’s decision to leave rates unchanged, though the narrow vote split reinforced expectations that borrowing costs could fall later this year if inflation continues to ease. The euro also edged up to 1.180 after the European Central Bank held policy steady and downplayed the influence of dollar strength on its future decisions.

Precious metals remained volatile. Spot gold rebounded sharply earlier today to 4,895 per ounce after sliding heavily in the previous session, while silver rose to 75.15. Heightened price swings prompted CME Group to raise margin requirements again for gold and silver contracts, marking the third increase since late January. The exchange has shifted to percentage-based margins in response to extreme moves following recent record highs.

Oil prices rose earlier this morning but remained on course for their first weekly decline since mid-December. Brent crude traded at 68.33 a barrel, while US crude stood at 64.09. Attention is focused on talks between the United States and Iran in Oman later today, with disagreement over the agenda keeping geopolitical risk elevated. At the same time, easing supply concerns and signs of higher output elsewhere have weighed on prices over the week.

Economic Calendar

• US: Non-farm payrolls report delayed due to government shutdown
• Germany: December industrial output; trade balance
• UK: January Halifax house price index
• France: January reserve assets; trade balance
• Corporate earnings: Philip Morris International; Cboe Global Markets; Société Générale; Telenor