Imagine waking up to a financial storm brewing on Wall Street, where tech giants tumble and whispers of economic fragility echo louder than ever—could this be the tipping point we've all been warned about? Stick around, because today's live market updates are packed with twists that might just redefine how you view your investments.
Live market updates: A growing 'wall of worry' drags Wall Street into a sharp decline, but the ASX might just dodge the bullet
It appears the Australian Securities Exchange (ASX) is poised to defy the tech-fueled downturn hitting Wall Street, sparked by underwhelming results from Palantir and mounting fears of an artificial intelligence (AI) bubble bursting, which sent U.S. stocks plummeting.
Adding to the unease, fresh concerns are surfacing about the stability of the American financial system, especially after banks turned to a Federal Reserve emergency funding tool for unprecedented sums last week.
Stay tuned for real-time financial news and expert analysis from our dedicated business reporters right here on our live blog.
Disclaimer: Please remember, this blog is purely for informational purposes and does not constitute investment advice.
Key Events
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19 minutes ago Tue 4 Nov 2025 at 9:19pm
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43 minutes ago Tue 4 Nov 2025 at 8:54pm
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1 hour ago Tue 4 Nov 2025 at 8:20pm
Key Event
19m ago Tue 4 Nov 2025 at 9:19pm
Corporate watchdog raises alarms over the surge in 'private credit'
By Michael Janda
You might not spend much time pondering the hidden nooks of the financial world, but if you're invested in superannuation (that's retirement savings for our international friends), it's time to pay closer attention.
The Australian Securities and Investments Commission (ASIC) has released comprehensive reports delving into private markets, with a particular focus on private credit. And here's where it gets controversial—many super funds are channeling a staggering 20-25% of their assets into these shadowy, less-regulated realms.
While ASIC acknowledges that these investments have a valid role, such as providing loans to businesses that traditional banks reject (think innovative startups or niche enterprises), they also flag significant risks that aren't always transparently disclosed, coupled with exorbitant fees that can eat into returns. But this is the part most people miss: private credit operates outside the stricter oversight of public markets, potentially exposing investors to hidden pitfalls like illiquidity or sudden value drops.
Our chief business correspondent, Ian Verrender, has been investigating this area extensively and offers an in-depth look at ASIC's worries.
32m ago Tue 4 Nov 2025 at 9:06pm
Norway's sovereign wealth fund opposes Musk's massive Tesla compensation package
By Michael Janda
Norway's sovereign wealth fund, holding the seventh-largest stake in Tesla, has become the biggest shareholder so far to declare its opposition to Elon Musk's equity-based reward plan, which could balloon to over a trillion dollars in value.
That said, Musk can still vote his 13.5% ownership in favor of the agreement, and several major institutional investors are on board, suggesting the proposal is likely to pass at the November 6 shareholder vote.
Key Event
43m ago Tue 4 Nov 2025 at 8:54pm
US banks seek record funding from the New York Fed amid cash crunches
By Michael Janda
My colleague David Taylor has uncovered some fascinating details about the New York Federal Reserve's 'repo' operations, which he has been monitoring closely. This lesser-known mechanism (familiar mostly to bankers) offers temporary cash infusions to banks facing short-term liquidity gaps—in simpler terms, it's like a quick loan to cover unexpected money shortages.
Just last Friday, U.S. banks drew a record $US50 billion from this facility, temporarily spiking short-term interest rates above the Fed's 3.75-4% target range.
Keep in mind, this specific repo program was introduced in 2021, so we're only looking at under five years of data here. Yesterday, David quizzed Reserve Bank of Australia Governor Michele Bullock on potential strains in the U.S. financial system.
She believes the Fed has it under control, stating, 'I don't think there will be a credit crunch because I think that's exactly what the Fed is trying to avoid.'
As Bullock explained, the Fed has positioned itself so that its reserves are at a minimum threshold to prevent money market disruptions for banks needing liquidity. This is part of their strategy to manage the situation.
Ironically, this brewing credit squeeze seems to stem from the Fed's own actions—through quantitative tightening, they've been withdrawing money from the system by letting their bond holdings mature without renewing them.
To illustrate, quantitative tightening is like slowly unplugging a financial 'life support' machine, reducing the overall cash flow in the economy to combat inflation, but it can sometimes create unintended shortages.
Last week, the Fed announced it would halt this process by early December.
1h ago Tue 4 Nov 2025 at 8:38pm
A 'wall of worry' pushes Wall Street down
By Michael Janda
It's always reassuring when experts validate your gut feelings. NAB's latest morning report just arrived, and their FX strategy head, Ray Attrill, concurs that the overnight sell-off on Wall Street lacked a single, clear trigger.
'No single catalyst stands out for the tech-driven drop in U.S. equities,' he notes, 'though 24-hour news networks are jumping on CEO comments from a global investment summit yesterday, including warnings from Goldman Sachs, Morgan Stanley, and Capital Group about potential equity pullbacks due to overvaluation concerns.'
He adds that cautious remarks on Federal Reserve policy post-last week's FOMC meeting—plus Fed Chair Powell's caveat that a December rate cut isn't guaranteed—are fueling the narrative. Plus, there's buzz around recent liquidity strains ahead of the Fed's QT pause, raising questions about whether cash will remain as plentiful.
Yet, local traders seem unfazed—or perhaps our market's smaller tech footprint makes it less susceptible—with ASX 200 futures climbing 0.2% to 8,831.
Could this signal international investors shifting focus from their heavy bets on U.S. mega-tech firms? And this is the part most people miss: while Wall Street frets, the ASX might be insulated by its own economic drivers, like commodities and local sectors.
Key Event
1h ago Tue 4 Nov 2025 at 8:20pm
US share traders experience a bout of nerves
By Michael Janda
Good morning, and welcome to another rollercoaster ride in the markets!
The technology sector is spearheading a sell-off in U.S. stocks, even with scant fresh developments driving it. A major highlight was AI favorite Palantir's earnings release: despite smashing revenue records, investors craved more, sending its shares tumbling over 9% just an hour before trading closed.
Financial outlets like Reuters are pointing to outdated remarks from Wall Street titans, such as JP Morgan's Jamie Dimon, as a possible spark, but that feels like a stretch.
Dimon cautioned last month about the elevated risk of a major stock correction in the next six months to two years, pointing to geopolitical unrest and inflated valuations.
'As Thomas Martin, a senior portfolio manager at GLOBALT in Atlanta, told Reuters, 'To predict a 10% to 20% correction in the next 12 to 24 months is nothing new—markets correct frequently, and it's healthy for them. It doesn't mean they'll stay down; corrections are just part of the cycle.''
Today, the benchmark S&P 500 is down 1.2%, and the Nasdaq has dipped 1.9%, with under an hour left in trading.
My colleague Ian Verrender penned an insightful piece yesterday on the red flags popping up for U.S. stocks.
As we wrap up this whirlwind of market insights—from AI bubbles and private credit pitfalls to Fed maneuvers and shareholder showdowns—it's time to ponder: Do you think the 'wall of worry' is justified, or is it just noise in a resilient economy? Could private credit's risks outweigh its rewards for everyday investors like you? And what about that trillion-dollar Tesla pay deal—fair compensation or excessive perk? Share your thoughts in the comments below; I'd love to hear your takes and spark a lively debate!
