# U.S. Tech Selloff Dents Bets on a December Fed Rate Hike

By Enna Lee

Canonical URL: https://www.tokenpost.com/news/investing/51061
Published: 2026-11-07T20:25:19.000Z
Updated: 2026-11-07T20:25:19.000Z
Section: Investing

> The Bank of England voted eight to one to raise its policy rate to 4%, its first increase in more than three years.

U.S. technology and semiconductor losses have weakened market expectations for a December Federal Reserve rate hike, as tighter financial conditions may curb the need for additional increases.

Concerns about returns on AI spending, data center regulation and leveraged trades being unwound weighed on the shares. Every S&P 500 sector ended lower. Investors shifted toward short-term U.S. Treasury securities and money-market funds, whose assets rose to $8.016 trillion.

The technology selloff also reduced market expectations for a December Fed increase, as tighter financial conditions may lessen the need for further hikes.

In the United Kingdom, the Bank of England voted eight to one to raise its policy rate by 25 basis points to 4%. It was the bank’s first increase in more than three years. The U.K. consumer price index rose 3.5% in September, and the bank projected inflation could reach 4.9% in the second quarter of 2027.

Policymakers are watching whether high energy costs spread to wages and business prices. Companies have absorbed some of the pressure through long-term contracts, hedging and lower profit margins, but those buffers may not last. Policymakers are also watching for weaker demand, which a rate increase could compound if household purchasing power falls.

The questions ahead are whether energy costs feed broader inflation and whether slower AI investment affects corporate financing and employment.