18 November 2025
The comments from the Google chief have added to that pause for thought. When a leader of one of the key beneficiaries of the AI boom acknowledges the potential for pockets of irrationality, it reminds investors that progress in transformative technologies can be bumpy. The long-term structural story remains intact, but it will not be immune from these sentiment-driven swings.
The next few days will set the tone for whether this reset deepens or stabilises. US labour market data from September, belatedly published this week, will be watched very closely not just for signals around the economy but also for how it could shape expectations for the Federal Reserve. In the UK, inflation figures tomorrow morning will provide another important piece of the policy puzzle, especially as the Bank of England continues to weigh easing inflation pressures against a still fragile growth backdrop and a difficult budget just a week away.
For now this looks like a natural cooling rather than a fundamental break in market confidence. Provided company earnings continue to justify the investment being poured into new technologies and economic data does not deteriorate sharply, the overall backdrop for equities can remain constructive. Investors should, however, be prepared for a more two-way market as we move through these key data points.
