{"id":548774,"date":"2025-11-04T16:05:11","date_gmt":"2025-11-04T16:05:11","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/548774\/"},"modified":"2025-11-04T16:05:11","modified_gmt":"2025-11-04T16:05:11","slug":"ftse-100-and-us-markets-slump-as-earnings-cast-doubts-on-valuations","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/548774\/","title":{"rendered":"FTSE 100 and US markets slump as earnings cast doubts on valuations"},"content":{"rendered":"\n

The FTSE 100 (^FTSE<\/a>) and European stocks slumped on Monday, as a fresh batch of quarterly earnings left investors calculating bets on sky-high valuations, with doubts creeping in. Meanwhile, Wall Street is getting nervous<\/a> that companies aren’t performing well enough to justify their high-riding market valuations, prompting big bank CEOs to flag a likely correction ahead<\/a>.<\/p>\n

Palantir (PLTR<\/a>) shares dropped more than 6.8% despite solid quarterly results<\/a> as analysts questioned the stock’s lofty price-to-earnings ratio.<\/p>\n

Wall Street is getting nervous<\/a> that companies aren’t performing well enough to justify their high-riding market valuations, prompting big bank CEOs to flag a likely correction ahead<\/a>.<\/p>\n

Meanwhile in the UK, Rachel Reeves made a pre-budget speech in an effort to manage expectations about new fiscal policy.<\/p>\n

The next raft of economic changes from the chancellor, set for 26 November, is now expected to include provisions that could increase taxes \u2014 a move which may breach manifesto commitments which the Labour party was elected on.<\/p>\n

“I understand that \u2013 these are important choices that will shape our economy for years to come,” Reeves said in a broadcast on Tuesday morning.<\/p>\n

Read more: <\/strong>Rachel Reeves likely to need \u00a326bn of tax rises in budget, think-tank warns<\/strong><\/a><\/p>\n

“But it is important that people understand the circumstances we are facing, the principles guiding my choices \u2013 and why I believe they will be the right choices for the country.”<\/p>\n

When questioned, Reeves refused to rule out tax rises. “As chancellor, I have to face the world as it is, not the world that I want it to be,” she said.<\/p>\n

Labour pledged not to hike income tax, VAT or national insurance in its general election manifesto. No chancellor has increased the basic rate in 50 years and it would be a risk politically.<\/p>\n

Reeves said she would stand by her fiscal rules but would have to increase the economic headroom for the government.<\/p>\n

Her comments came a day after prime minister Keir Starmer said that there are “hard and serious choices ahead”.<\/p>\n