Sagar Agrahari
•
November 11, 2025
•
2 min read
Global Stock Markets React to SoftBank’s Massive Nvidia Exit and UK Economic Slowdown
In a major shake-up across global markets today, tech shares tumbled after SoftBank Group confirmed the sale of its entire US $5.83 billion stake in Nvidia Corporation, sparking renewed fears of an AI bubble correction. The move triggered widespread profit-taking in the technology sector, with Nvidia shares falling more than 3% and leading declines in the Nasdaq and global semiconductor stocks.
Analysts interpret the sale as a signal that even top tech investors are becoming cautious about overheated valuations in AI-driven stocks. SoftBank, which had accumulated a significant Nvidia position during the AI boom, is now realigning its portfolio toward stable, cash-flow-generating assets — a strategy often adopted before expected market corrections.
Meanwhile, across the Atlantic, the UK economy is showing signs of strain. Fresh data revealed that unemployment has climbed to 5%, its highest level since early 2021, while wage growth has cooled sharply. These developments have fueled expectations that the Bank of England (BoE) will deliver a much-anticipated interest rate cut in December 2025, potentially ending the aggressive tightening cycle that began in 2022.
The British pound weakened against major currencies on the news, while the FTSE 100 Index surged to record highs above 9,900 points, driven by sectors that benefit from lower interest rates, such as housebuilders and utilities. Economists note that a December rate cut could ease borrowing costs, stimulate spending, and offer relief to mortgage holders — but it may also highlight deeper economic vulnerabilities.
Globally, investors are adopting a cautious tone. The combination of a tech-sector sell-off and shifting monetary-policy expectations is creating short-term volatility in equity markets. Traders are closely watching upcoming inflation reports and U.S. labor data for further cues on central-bank actions.
Financial strategists suggest that while AI-driven growth stocks may face near-term turbulence, rate-sensitive sectors like real estate, banking, and consumer goods could emerge as relative outperformers in the months ahead.
