Selloff rattles markets as credit risks and volatility rise

A sharp selloff in technology stocks in late market trading has intensified concerns over global financial stability, lifting volatility and credit risk while investors move toward safer assets. In London, the article notes that the Nasdaq 100 rebounded nearly 2% on November 6 after dropping more than 6% the previous day, but sentiment around AI spending remained cautious. The Wall Street VIX rose above 28 on November 5, its highest since late March, and stayed near that level. Europe’s volatility gauge also hit a multi-month high. Credit strains showed up as five-year credit default swap spreads for CoreWeave exceeded 1,000 basis points, and junk-bond risk premiums reached the highest levels since major 2025 tariff disruptions.