Imagine waking up to a world where financial markets are in turmoil, with tech giants stumbling and whispers of a potential AI bubble bursting—could this be the start of something bigger, or just another storm we'll weather? But here's where it gets controversial: are we witnessing the early signs of a global economic reckoning, or is this overblown panic that savvy investors can turn into opportunity? Dive into our live updates to uncover the drama unfolding on Wall Street and why the ASX might just dodge the bullet.
The ASX appears poised to defy the tech-driven downturn shaking Wall Street, spurred by lackluster performance from Palantir and mounting fears of an AI hype cycle imploding, which triggered a significant plunge in US stock values.
Adding to the unease, there's growing anxiety about the stability of the American banking sector, following banks drawing unprecedented sums from a Federal Reserve emergency funding program just last week.
Stay tuned for real-time financial developments and expert analysis from our dedicated business journalists right here on our live blog.
Please note: this blog does not constitute investment advice.
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19 minutes agoTue 4 Nov 2025 at 9:19pm
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43 minutes agoTue 4 Nov 2025 at 8:54pm
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1 hours agoTue 4 Nov 2025 at 8:20pm
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19m agoTue 4 Nov 2025 at 9:19pm
Australia's corporate regulator sounds the alarm on the surge in 'private credit'
By Michael Janda
You might not often ponder the hidden nooks of the financial landscape, but if you're contributing to superannuation, it's definitely worth your attention.
The Australian Securities and Investments Commission has recently released in-depth reports focusing on private markets, with a special emphasis on private credit.
Their findings reveal that numerous super funds are allocating 20-25% of their portfolios to these less transparent and more lightly regulated investments.
While acknowledging a valid role for such financing—often providing loans to ventures that traditional banks have overlooked—they've cautioned against inadequately communicated risks and exorbitant charges.
Our ABC business chief correspondent, Ian Verrender, has been delving into this subject extensively and shares his insights into ASIC's reservations.
32m agoTue 4 Nov 2025 at 9:06pm
Norway's state-owned wealth fund plans to oppose Musk's Tesla compensation package
By Michael Janda
As the seventh-largest shareholder in Tesla, Norway's sovereign wealth fund—the biggest so far to voice opposition—intends to vote against Elon Musk's equity-based reward proposal, which could potentially value over a trillion dollars.
That said, Musk can leverage his 13.5% stake to support the agreement, and several major institutional investors are endorsing it, likely ensuring its approval during the November 6 shareholder vote.
Key Event
43m agoTue 4 Nov 2025 at 8:54pm
American banks are tapping the New York Fed for unprecedented liquidity
By Michael Janda
My colleague David Taylor has done some excellent investigative work, closely monitoring the New York Federal Reserve's "repo" activities.
This lesser-known tool, primarily familiar within banking communities, is offered by the Fed to assist banks in managing short-term liquidity gaps—in simpler terms, brief cash flow issues.
On Friday, US banks secured a historic $US50 billion through repo funding, causing short-term interest rates to spike well beyond the Fed's 3.75-4% benchmark.
It's important to remember that this specific repo program only began in 2021, so we're dealing with less than five years of historical data.
Yesterday, David inquired with RBA governor Michele Bullock about potential worries regarding strains in the US financial framework.
She believes the Fed has the situation under control.
"I don't anticipate a credit crunch, as that's precisely what the Fed aims to prevent."
"The Fed, as outlined by Federal Reserve chair Jay Powell, has reached a point where their reserves are at their lowest sustainable level without complicating money market operations for banks seeking liquidity."
"This is clearly an element of their strategy to address that."
Interestingly, as Bullock explained, any budding credit squeeze seems to stem from the Fed's own actions—they've been withdrawing funds from the system by letting their bond holdings mature without reinvesting, a method called quantitative tightening.
Just last week, the Fed declared they would halt this quantitative tightening at the beginning of December.
And this is the part most people miss: could the Fed's tightening be the unintended architect of market stress, or is it a necessary recalibration? For beginners, think of quantitative tightening like slowly draining a pool—it's meant to cool down an overheated economy, but if done too fast, it might leave everyone scrambling for water.
1h agoTue 4 Nov 2025 at 8:38pm
A wall of concerns drags Wall Street downward
By Michael Janda
It's reassuring when experts validate your initial observations.
NAB's latest morning briefing has arrived, and their FX strategy chief, Ray Attrill, concurs that the Wall Street sell-off lacked a clear, single trigger.
"No evident spark ignited the tech-heavy drop in US stocks, although 24-hour news outlets swiftly highlighted remarks from various CEOs at a recent global investment conference, including those from Goldman Sachs, Morgan Stanley, and Capital Group, who cautioned about an impending equity retreat due to overvaluation."
"Further hesitancy around Federal Reserve policies persists following last week's FOMC meeting, with warnings from chair Powell that a December rate reduction is by no means guaranteed. Additionally, reports of funding pressures ahead of the Fed's QT cessation announcement raise doubts about the continuity of ample liquidity."
Yet, it seems local traders aren't gripped by the same anxieties—or perhaps our tech exposure isn't substantial enough to fret over—with ASX 200 futures climbing 0.2% to 8,831.
Could foreign investors be shifting focus from their hefty US tech holdings? This might be a pivotal moment where global markets diverge, sparking debates on whether the US-centric tech boom is sustainable or ripe for a reality check.
Key Event
1h agoTue 4 Nov 2025 at 8:20pm
US stock traders experience a wave of nervousness
By Michael Janda
Greetings and welcome to another exciting day in the markets!
The technology sector is spearheading a decline in American equities, even with scant fresh developments.
A major point of interest was the earnings release from AI favorite Palantir. Despite achieving all-time high revenues, investors demanded more, causing its stock to plummet over 9% before the trading day concluded.
Financial outlets like Reuters point to outdated statements from Wall Street executives, such as JP Morgan's Jamie Dimon, as a possible driver, though this feels like a tenuous link.
Dimon cautioned last month about the elevated likelihood of a major market downturn in the ensuing six months to two years, pointing to geopolitical risks and elevated asset prices.
"Suggesting a 10% to 20% drop in the next 12 to 24 months is hardly earth-shattering," Thomas Martin, a senior portfolio manager at GLOBALT in Atlanta, shared with Reuters.
"Market corrections happen regularly. They're beneficial, purging excesses, and don't imply permanent damage."
"It's not as if prices will tumble 10% and remain there. Periodic dips are essential."
As of now, the benchmark S&P 500 is down 1.2%, and the Nasdaq has fallen 1.9%, with under an hour left in trading.
My colleague Ian Verrender provided a compelling breakdown yesterday of red flags emerging for US equities.
To wrap this up, what do you think—is the current market jitteriness a sign of deeper systemic issues, or just a healthy correction in an overvalued world? Do you agree that private credit's risks are being underplayed, or is it a smart diversification strategy? Share your thoughts in the comments—let's debate whether Tesla's pay package is fair compensation for innovation or an outrageous giveaway. And here's a controversial twist: could quantitative tightening actually be a deliberate tactic to pop speculative bubbles, benefiting long-term stability at the expense of short-term pain? Weigh in below!
