Must read: AI wobble, Palantir, JD Wetherspoon
ii’s head of investment rounds up the morning’s big news.
5th November 2025 09:03
by Victoria Scholar from interactive investor
GLOBAL MARKETS
European markets have opened lower, taking their cues from a sell-off on Wall Street, with the Nasdaq shedding 2% and the S&P 500 down over 1.1% while stocks in Asia also lost ground with the Nikkei falling sharply amid concerns about AI valuations.
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US futures are pointing to further declines today after Palantir Technologies Inc Ordinary Shares - Class A (NASDAQ:PLTR) fell 8% following hedge fund manager Michael Burry's revelation that he holds a $912 million position against the company.
In terms of data, China’s RatingDog services PMI hit 52.6 in October, a July low, versus 52.9 in September, missing analysts’ expectations.
JD WETHERSPOON
Wetherspoon (J D) (LSE:JDW) reported 14-week like-for-like sales growth of 3.7%, a deceleration from 5.1% in the previous period. Year-to-date, total sales are up 4.2%. The pub chain has been dealing with higher costs on the back of the minimum wage increase and national insurance hike. And it looks like there could be more pain to come as the chancellor prepares to deliver further tax increases at the Autumn Budget later this month.
Despite intense pressures facing the UK hospitality sector, Wetherspoons has maintained its popularity thanks to its affordable food and drinks prices which have helped it withstand the impact of dwindling consumer demand amid cost of living pressures. But even it is struggling amid a slowdown in sales, with hopes that the busy Christmas period will provide a much needed seasonal boost.
Lockdown continues to leave a stain, with the pub chain's share price sharply below pre-pandemic levels. Wetherspoon’s dogged determination to fight its corner has won the brand many friends, but from an investment perspective the jury remains out on prospects.
Shares are down this morning with investors clearly concerned about its cautious outlook. The stock has been under pressure since the highs in July, shedding 14% over the last three months. Morgan Stanley and Barclays cut their price targets on the stock in October.
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