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On Friday, the major indices in the U.S. finished sharply lower as disappointing results from Intel and Amazon intensified concerns over the cost of the AI investment cycle. Intel suffered its worst session since the 1970s, helping trigger a broad selloff across semiconductor and technology shares.
The S&P 500 fell 140.32pts (-1.82%) to 7,580.
The Nasdaq 100 dropped 1,017.66pts (-3.46%) to 28,384.
The Dow declined 572.25pts (-1.09%) to 51,770.
On the sector front, Energy (XLE), Consumer Staples (XLP), and Utilities (XLU) outperformed, while Communication Services (XLC), Industrials (XLI), and Technology (XLK) underperformed the most.
Looking at the latest U.S. economic data, the Chicago Purchasing Managers' Index came in at 55.3 in October, below the 56.1 expected and down from 58.8 in September.
U.S. Equity News:
Intel (INTC), a semiconductor manufacturer, plunged 28.6% after issuing weaker-than-expected fourth-quarter revenue guidance and warning that PC-market weakness and supply constraints could persist into the first half of 2027.
FedEx Freight (FDXF), a less-than-truckload freight transportation company, surged 14.9% after reporting third-quarter adjusted EPS of $1.49, above expectations, while raising its transition-period operating income and margin outlook.
Global Payments (GPN), a payments technology and processing company, jumped 13.0% after reports that private equity firm Clayton, Dubilier & Rice was exploring a potential take-private transaction.
Reddit (RDDT), a social media and online community platform, tumbled 29.3% after announcing plans to test a logged-in-only experience, raising concerns over potential impacts on user reach and engagement.
SanDisk (SNDK), a flash memory and data-storage company, fell 13.5% despite strong growth in its data-center business, which accounted for nearly 90% of its sequential revenue increase.
Nvidia (NVDA), a semiconductor company specializing in AI accelerators, fell 4.2% as the broader chip sector sold off amid renewed concerns over AI-related capital spending and returns.
Volatility & Commodities Snapshot:
The VIX index jumped 2.22pts (+12.91%) to 19.42.
The U.S. 10-year yield declined 6.01 basis points to 4.929%.
In the commodities market, gold fell $137.93 (-3.43%) to $3,882.49.
Silver dropped $3.13 (-5.98%) to $49.25.
WTI Crude Oil gained $0.85 (+0.83%) to $102.85.
Europe Market Overview:
At the European close, the major indices in the region finished mixed.
Germany's DAX fell 221pts (-0.85%) to 25,818.
France's CAC 40 was nearly unchanged at 7,969.
The U.K.'s FTSE 100 edged up 8pts (+0.07%) to 10,729.
On the economic data front, eurozone GDP grew 0.4% quarter-on-quarter in the preliminary third-quarter estimate, above the 0.2% expected, following a 0.6% increase in the previous quarter. Germany's GDP rose 0.2%, above the 0.1% expected, while France's economy contracted 0.1% versus expectations for 0.1% growth. French inflation accelerated to 3.4% year-on-year, above the 3.2% expected and up from 3.1% previously.
Foreign Exchange & Crypto Wrap:
The Dollar Index declined 0.14pt (-0.14%) to 101.896.
EUR/USD slipped 10pips (-0.09%) to 1.1168.
GBP/USD gained 22pips (+0.16%) to 1.3397.
USD/JPY fell 17pips (-0.11%) to 157.52.
USD/CHF was nearly unchanged at 0.8240.
AUD/USD gained 8pips (+0.11%) to 0.7035.
USD/CAD fell 20pips (-0.20%) to 1.3960. In Canada, GDP was unchanged month-on-month in August, below expectations for a 0.2% increase and following a flat reading in July.
Bitcoin fell $1,975 (-2.50%) to $76,866.
Ethereum declined $21 (-0.93%) to $2,239.
Cryptocurrency-related assets came under additional pressure following reports that hackers stole approximately $6.3 billion from Binance, the world's largest cryptocurrency exchange. Coinbase, Strategy and Robinhood fell between 8.8% and 13.6% during the session.
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