GCC stock markets remained largely under pressure today, influenced by a prevailing global “risk-off” sentiment. Investors worldwide are grappling with concerns over potential AI stock overvaluation while awaiting Nvidia’s Q3 earnings release tomorrow. Additionally, uncertainty regarding the Federal Reserve’s next interest rate decision in December continues to weigh heavily on market confidence.
The Saudi stock market edged slightly higher following yesterday’s flat performance, as the index attempted to rebound. Sector performance was mixed, with the Banking sector providing some stability as key stocks like Al Rajhi and Alinma traded higher. However, the market appears to need a broader improvement in sentiment to sustain a meaningful rebound and erase recent correction losses, though any forthcoming positive developments could accelerate this recovery.
In the UAE, the Dubai Financial Market was lower as its correction phase extended, dragged down by the broader negative sentiment. While the Financial and Real Estate sectors weighed negatively on performance, fundamentals remain solid, and strong Q3 earnings suggest the market is well-positioned for a recovery once general sentiment improves.
Similarly, the Abu Dhabi stock market fell for the fifth consecutive session. Most leading stocks traded in negative territory, and the market risks continuing its downward correction if the current risk-off sentiment persists. Furthermore, the bearish outlook on oil prices remains a key risk factor for the index.