Markets and geopolitics drove the news cycle on Friday, with Wall Street swinging sharply on fears of overheated AI valuations and fading hopes for a Fed rate cut.
Corporate shake-ups also made headlines as Walmart named John Furner its next CEO. Tensions rose in Asia after China blasted Japan over comments linking Taiwan to Japan’s security.
And in crypto, Bitcoin slid to a six-month low, pressured by risk-off sentiment and weakening institutional demand.
A glance at the major developments on Friday.
Wall Street sways on AI valuation fears
Wall Street had a choppy day as worries over sky-high AI stock valuations and fading hopes for a December Fed rate cut sparked a sharp selloff.
The S&P 500 and Nasdaq tumbled early on but later recovered most of their losses, thanks in part to a rebound in Nvidia after an earlier steep drop.
Still, investors are on edge. Slower economic data and stubborn inflation have made people doubt whether the Fed will cut rates anytime soon, and many feel tech valuations are getting overheated.
The unease wasn’t limited to the US either: European and Asian markets also slipped, reflecting broader concerns about interest rates, AI hype, and signs of economic cooling.
Walmart announces new CEO
Walmart CEO Doug McMillon is set to retire on January 31, 2026, wrapping up more than a decade in the top job.
Taking his place will be John Furner, the current CEO of Walmart US, who steps into the President and CEO role on February 1.
Furner, now 51, started at Walmart over 30 years ago as an hourly associate and worked his way through a series of leadership roles before taking over the US business in 2019.
He’s widely known for his collaborative approach and strong push toward digital innovation, and many expect him to lead Walmart through its next phase of growth and AI-powered retail transformation.
McMillon isn’t disappearing entirely, though; he’ll stay on the board until the next shareholders’ meeting and continue advising the company through 2027.
China slams Japan over Taiwan
China’s top state newspaper, People’s Daily, is taking aim at Japan after Prime Minister Sanae Takaichi suggested that a Chinese attack on Taiwan could threaten Japan’s survival and potentially justify military action.
Takaichi made the comments in parliament, and they quickly escalated tensions between the two countries. Beijing even summoned Japan’s ambassador to file a formal protest.
In a sharply worded editorial, People’s Daily accused Japan of trying to revive wartime militarism, expanding its military power, and downplaying past atrocities.
The paper warned Japan not to repeat the mistakes of history. The clash underscores how old grievances and current worries over Taiwan continue to fuel friction between Beijing and Tokyo.
Bitcoin falls below $95K
Bitcoin slid below $95,000 on Friday, extending a four-day slump as worries over soaring tech valuations and a broader risk-off mood hit the markets.
The cryptocurrency dropped about 3.5% to around $94,896, its lowest level in six months.
Investors are getting nervous, especially as doubts grow over whether the Federal Reserve will deliver any rate cuts soon, something that had previously helped fuel rallies in riskier assets.
At the same time, institutional interest has cooled, and more long-term holders are starting to cash out, adding to the downward pressure.
Bitcoin’s latest drop is also part of a wider pullback sparked by selloffs in tech and AI stocks, which is feeding into higher volatility across the entire crypto market.
The post Evening digest: Wall Street turmoil, Walmart CEO shift, Bitcoin hits six-month low appeared first on Invezz
