Global stocks tumbled in October, pressured by rising U.S. interest rates, worsening global trade relations and investor concerns about lofty valuations among technology and consumer tech companies. The powerful sell-off was initially triggered by surging Treasury bond yields, which were boosted by signs of stronger-than-expected U.S. economic activity.
Previously high-flying stocks led the market downturn, including Amazon and Microsoft. Traditionally defensive sectors such as utilities and consumer staples fared relatively better. Emerging markets stocks also declined broadly – with the notable exception of Brazil, where assets rallied on the election of market-friendly President Jair Bolsonaro.