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Business News›Markets›US Stocks›Wall St Guide›US Stock Market Highlights: Dow Jones crashes 500 pts, Nasdaq over 2.5% as AI cash burn fears spark tech selloff LIVE BLOG Stock Market Today Highlights Synopsis Dow Jones | Nasdaq | Stock Market Highlights: US stocks tumble as disappointing results from Intel and Amazon deepen concerns over rising AI spending and uncertain returns. The Nasdaq suffers its biggest single-day percentage drop since June 5, while the S&P 500 and Nasdaq end October lower. The Dow, however, posts a monthly gain. Wall Street ends sharply lower on Friday as disappointing quarterly results from Intel and Amazon trigger a broad technology selloff. Investors question whether massive AI investments will generate adequate returns, putting pressure on chipmakers and dragging the Nasdaq to its steepest daily decline since June 5. - Nasdaq plunges 2.84%, its biggest one-day percentage drop since June 5. - S&P; 500 falls 1.80%, while the Dow drops 1.09%. - S&P; 500 and Nasdaq post monthly losses, while the Dow ends October higher. - Coinbase, Strategy and Robinhood slide amid reports of a $6.3 billion hack at Binance. Show more 1 New Update More than $2 trillion in market value is said to have been wiped out from the technology-heavy Nasdaq 100 which cracked over 4% on Friday and nearly 6% this month, as Big Tech earnings have intensified investor concerns over whether massive investments in artificial intelligence (AI) will generate returns quickly enough. Read more: Nasdaq 100 sinks as AI jitters erase $2 trillion S&P; 500 lost 139.30 points, or 1.80%, to end at 7,580.21 points, while the Nasdaq Composite lost 747.73 points, or 2.84%, to 25,440.68. The Dow Jones Industrial Average fell 571.98 points, or 1.09%, to 51,770.58. Read more: Dow Jones crashes 500 pts A planned White House hearing investigating mortgage fraud allegations against Federal Reserve Governor Lisa Cook has been postponed to December. Kevin Hassett, top economic adviser to President Donald Trump, stated that administration officials worked closely with Cook's legal team to arrange a meeting to review evidence, though Cook's representatives have not publicly confirmed a finalized date. The move follows a June Supreme Court ruling establishing that the president cannot remove a Fed governor at will, requiring instead a demonstration of cause and an opportunity for defense. Cook's defense counsel previously stated she would be unavailable until after the central bank's December policy-setting meeting. Her legal team has rejected the allegations as a pretext to oust her over monetary policy stance, noted by her recent dissent favoring a rate hike to curb persistent inflation. Trump has long criticized the Federal Reserve's rate decisions, while Hassett defended Federal Reserve Chairman Kevin Warsh's handling of board dissent as the administration proceeds with its three-person inquiry panel. Binance's assurances that customer funds remain secure following a record $6.3 billion cyber heist face widespread skepticism, as the incident exposes fundamental vulnerabilities in cryptocurrency infrastructure. The theft, executed in part via a single compromised employee laptop, underscores structural security flaws in centralized platforms, while subsequent emergency measures—including withdrawal freezes and asset lockups—highlight the centralized power exerted by major industry players. Although Binance pledged to cover losses using its emergency reserve fund, the platform's $1 billion Bitcoin-denominated backing falls significantly short of the unrecovered stolen assets. Analysts warn that emergency asset freezes by stablecoin issuers run counter to core principles of decentralization, while persistent cybersecurity risks and structural vulnerabilities threaten to undermine broader efforts to attract institutional investors. Bank of America Corp. has hired Eddie Manheimer from Morgan Stanley as head of global power and utilities investment banking, strengthening its coverage of energy and infrastructure dealmaking tied to artificial intelligence expansion. Manheimer previously served as head of North America power and utility investment banking at Morgan Stanley, advising on major transactions for firms such as Eversource Energy, Centerpoint Energy, and Iberdrola SA. Manheimer will assume his new role in January and report to Todd Giardinelli, head of global natural resources and energy transition investment banking. The recruitment aligns with Bank of America's strategy to bolster advisory and financing capabilities for data center power demands and digital infrastructure growth, alongside internal promotions that saw Patrick de Loe and Ahmad Masud named chairs of global power and utilities investment banking. Chevron expects to supply power to a major Microsoft Corp. data center project in West Texas on schedule despite Governor Greg Abbott’s broader suspension of digital infrastructure permits. Chief Financial Officer Eimear Bonner stated that ongoing permitting, engineering, and financing work remain on track for initial power delivery in 2028, with full operations ramping up by 2031. Known as Project Kilby, the Permian Basin development involves a partnership between Chevron and Joulent LLC to supply natural gas for Microsoft’s facility amid local opposition to regional data center expansion. Chevron noted that the project complies with state standards because it will generate its own off-grid power to avoid inflating consumer electricity bills and utilize non-potable water for cooling to protect local drinking supplies. Investors are returning to long-dated government debt as risk-free payouts near multi-decade highs prove increasingly difficult to ignore amid equity market volatility. Ten-year US Treasury yields peaked near 5.4% this month while Japanese yields hit a 30-year high of 3.14%, prompting major asset managers including JPMorgan, Aegon, and Allianz GI to extend duration. A global gauge of government bonds maturing in 10 years or more returned 2.68% in October, marking its first month of outperformance against short-term debt since February as investors seek safe-haven assets away from tech sector pressures. Despite the recent rally, fund managers caution that broader risks including energy-driven inflation, fiscal deficits, and political uncertainty surrounding the US midterm elections remain unresolved. Doubts linger over Federal Reserve policy commitments and European fiscal stability, leading some strategists to view the price surge as a temporary pause rather than a permanent structural turn. However, the retreat in yields provides timely relief for the US Treasury Department ahead of its quarterly refunding announcement, while also spurring demand for long-dated Japanese, UK, and German sovereign debt. - Oliver Pursche, senior vice president at Wealthspire Advisors in New York North Korean cybercriminals are believed to be behind the record $6.3 billion hack of Binance, marking an unprecedented escalation in digital-asset thefts attributed to state-sponsored actors. Blockchain intelligence firm TRM Labs and security experts identified the elite hacking unit TraderTraitor—previously blamed for the $1.5 billion Bybit attack—as the likely culprit, noting that the group stole roughly as much in a single evening as it had over the preceding six years combined. Security analysts indicate the complex attack targeted a software engineer's laptop to compromise Binance's withdrawal systems, reflecting a sharp evolution in tactics powered by artificial intelligence tools for network reconnaissance and social engineering. The incident underscores lingering security vulnerabilities across centralized crypto exchanges, with former regulatory officials highlighting that traditional banking friction, oversight, and regulatory controls continue to offer protections against high-value thefts that remain absent in decentralized finance. Bitcoin fell below $77,000 for the first time in over a month, reaching a low of $76,300 after Binance Holdings revealed the largest crypto theft on record, involving an attempted $6 billion breach. The security failure triggered widespread liquidations across the digital-asset sector, driving Binance's BNB token down 7% and erasing $1.3 billion in bullish crypto positions over a 24-hour period amidst a broader macroeconomic selloff in technology equities. Binance suspended withdrawals and allocated $6.34 billion in corporate funds to cover customer losses, while US law enforcement agencies including the FBI and Secret Service launched investigations to trace the stolen assets. Major stablecoin issuers Tether and Circle swiftly froze a combined $2.3 billion in linked funds, but market strategists warn that persistent security breaches and counterparty risks could deter institutional investors from maintaining exposure to the asset class. - Joe Tigay, portfolio manager at Equity Armor Investments US energy firms kept the total oil and gas rig count unchanged at 603 for the week ending October 30, according to data from energy services firm Baker Hughes. While the total count remains up 10% from the same period last year, a gain of two oil rigs to 462 was offset by a decline of two gas rigs to 130, leaving overall drilling activity flat for a third consecutive week. The steady rig count comes as the US Energy Information Administration projects domestic crude output to rise from 13.7 million barrels per day in 2025 to 13.9 million bpd in 2026, driven by higher West Texas Intermediate crude prices following Iran war supply disruptions. EIA also forecasts natural gas production to expand from 107.6 billion cubic feet per day to 112.2 bcfd in 2026, fueled by accelerating demand from power-intensive data centers and expanding liquefied natural gas export infrastructure. Intel Corp. stock plummeted up to 30% in its worst intraday decline since 1982 after issuing a fourth-quarter outlook that missed Wall Street projections across revenue and earnings. The chipmaker expects fourth-quarter sales of $15 billion to $16 billion against analyst expectations of $17 billion, dragged down by an ongoing slump in the personal computer market, soaring memory chip prices, and a $300 million revenue hit from a temporary factory closure in Israel. Chief Executive Officer Lip-Bu Tan warned that PC industry weakness will persist through the first half of 2027, even as third-quarter revenue rose 21% to $16.5 billion driven by a 78% surge in data center and artificial intelligence sales. To support its long-term turnaround, Intel plans to expand capital spending to $20 billion in 2026 and increase investments further in 2027, though Chief Financial Officer Dave Zinsner cautioned that heavy manufacturing outlays will prevent the company from generating free cash flow next year. Federal Reserve Bank of St. Louis President Alberto Musalem stated on Friday that his primary focus is preventing elevated price pressures from spreading further across the broader economy and triggering second-round inflationary effects. Speaking before the Shadow Open Market Committee in New York, Musalem emphasized the need to contain core services inflation, excluding housing, to ensure cost pressures do not worsen. Musalem's remarks underscore ongoing concerns within the central bank regarding persistent service-sector price increases, even as overall monetary policy remains under tight market observation. Policymakers continue to monitor whether targeted cost surges could embed themselves into broader inflation expectations and necessitate further policy action. Gold tumbled to a one-year low below $3,897 an ounce on Friday, while silver, platinum, and palladium sank deep into technically oversold territory amid a global tech stock selloff. Analysts attributed the sharp decline across the precious metals complex to forced liquidations and margin calls as investors sold liquid assets to cover equity losses following disappointing Big Tech earnings. Silver broke below $50 an ounce for the first time in 11 months to trade at $49, while palladium dropped below the $1,000 threshold under pressure from weakening automotive demand. Unlike gold, which continues to see underlying support from central bank purchases below $4,000, white metals lack sovereign backing and face headwinds from softening industrial demand, driving the gold-to-silver ratio to its highest level in nearly a year. - Gene Goldman, chief investment officer at Cetera Artificial intelligence startup Anthropic may fail to secure an investment-grade credit rating following its initial public offering, according to a Financial Times report citing guidance provided by Blackstone to its investors. Blackstone expects Anthropic to instead receive a high junk rating upon going public. The assessment marks a notable shift from previous guidance regarding the company's creditworthiness as it prepares to enter public markets. Morgan Stanley analyst says investors should look past the spending in Amazon. “Growth was disappointing vs expectations … but this seems mostly an expectations miss as $3.8bn added [quarter over quarter] was the second highest … added in AWS history and it does not change AWS’s potential for further acceleration and its long-term opportunity,” Morgan Stanley analyst Brian Nowak said Friday in a note to clients. Hackers have reportedly stolen $6.3 billion from cryptocurrency exchange Binance in what is being described as the largest heist in the history of the digital asset industry. The incident adds to a growing list of cybersecurity breaches targeting financial institutions and platforms. Binance, the world's largest cryptocurrency trading platform, temporarily suspended withdrawals following the attack and assured users that it would compensate for all losses. In a statement posted on X, the company said approximately $3 billion worth of assets had been frozen across blockchain networks. Co-founder Yi He separately indicated that withdrawal services were expected to resume by Sunday. Although the exact circumstances surrounding the security breach remain unclear, the incident has intensified concerns over the growing threat of cyberattacks in an increasingly AI-driven environment. Recent attacks have also affected prediction market platform Polymarket, South Korean financial institutions Mirae Asset Global Investments and Daishin Securities, and Japan-based currency trading platform GMO Internet Group. US Treasuries rallied on Friday, driving benchmark 10-year yields down to 4.945% and positioning them for a 35 basis point drop in October—their largest monthly decline since December 2023. A sharp downturn in tech shares, triggered by Amazon's surging capital expenditure plans and Intel's severe cash burn warning, fueled anxieties over heavy artificial intelligence spending and spurred investors toward safe-haven assets. The slide in yields marks a shift in market sentiment, pausing a previous selloff that had pushed borrowing costs to multi-decade highs amid energy price volatility and expanding government debt. Despite underlying economic strength—highlighted by accelerating consumer spending and resilient third-quarter GDP growth—investors are recalibrating rate expectations as tech sector drag and semiconductor weakness raise questions about broader economic momentum. The main US aluminum trade group is urging Canada and Mexico to match Washington's tariffs on metal imported from outside North America, aiming to build a unified regional market. Aluminum Association CEO Chuck Johnson stressed that matching border tariffs across the three nations is essential for equal trade within North America, particularly as the US relies on foreign suppliers, mainly Canada, for about 60% of its primary aluminum needs. While declining to take a stance on whether President Donald Trump's current 50% tariff rate should be adjusted, the association is focusing on making the existing framework workable for the industry. The group is advocating for stronger rules of origin, enhanced monitoring of regional imports, and a simpler tariff structure to prevent market arbitrage and counter non-market competition from countries like China. America's top technology companies are facing mounting investor scrutiny as slowing growth in their core advertising and e-commerce businesses collides with a collective $750 billion in artificial intelligence capital spending. Quarterly results from Alphabet and Amazon revealed deceleration in legacy cash-cow units, while aggressive infrastructure spending and heavy debt issuance sparked a broad tech selloff. Alphabet's search advertising recorded its slowest growth in five quarters, and Amazon's ad unit logged its weakest expansion since first being broken out in 2022. Market anxieties are further compounded by fears that new generative tools are cannibalizing core high-margin products. Alphabet acknowledged lower monetization rates for query results using its AI Mode, while Meta warned that its new AI app is extraordinarily compute-intensive. Although cloud divisions at Google, Amazon, and Microsoft showed strong gains, the high capital requirements of the AI transition continue to weigh on stock performance and test investor patience across the sector. Leading data center developers, including Blackstone Inc.’s QTS, Vantage Data Centers, Compass Datacenters, and Digital Realty, have pledged to improve transparency regarding their local environmental impact and corporate ownership. Joining as founding members of the industry group Infrastructure for America, the firms committed to publishing disclosures on power and water demands, eliminating evaporative cooling methods in favor of closed-loop systems, and refraining from requiring local governments to sign non-disclosure agreements. The nonbinding initiative comes as organized community opposition blocked or delayed at least 45 US data center projects in the second quarter, drawing heightened scrutiny from lawmakers over energy costs and tax incentives. To alleviate public backlash and grid strain, the developers also agreed to fund their own infrastructure upgrades, participate in peak-demand power reduction programs, and support utility rate structures that protect everyday consumers from rising electricity bills. Gold dropped as much as 3.2% to $3,891.67 an ounce, reaching its lowest level in a year and placing the metal on track for its worst October performance since 2008. The selloff was driven by rising Brent crude prices due to Middle East tensions, which intensified inflationary pressures and prompted traders to sell bullion to cover equity losses during an ongoing global technology stock rout. Expectations of a potential Federal Reserve interest rate hike in December added further pressure on non-yielding precious metals. Silver also tumbled nearly 5% to $49.64 an ounce, pushing its monthly decline to roughly 18% as technical fund selling and long liquidations drove prices lower alongside declines in platinum and palladium. US stocks extended their losses on Friday, with the Nasdaq Composite falling 2.37% to 25,564.84. The S&P; 500 declined 1.45% to 7,608.17, while the Dow Jones Industrial Average shed 0.59% to 52,032.31, as concerns over rising AI spending and mounting costs weighed on investor sentiment. The US dollar's recent surge is expected to persist despite potential political gridlock from the upcoming midterm elections, supported by high interest rates, strong relative economic growth, and substantial capital inflows. Even if polls prove accurate and Democrats capture control of Congress to create a divided government, analysts note that market dynamics are primarily driven by underlying economic fundamentals and a potential veto by President Donald Trump on proposed artificial intelligence regulations. While near-term risks include tech sector volatility and concerns over slowing capital expenditure on AI, long-term confidence in the currency remains intact. Expectations that the Federal Reserve will resume interest rate increases following the election, coupled with lingering geopolitical pressures on global energy markets, continue to underpin bullish market positioning and reinforce the greenback's broader strength. The tech-heavy Nasdaq 100 is on track to shed more than $2 trillion in market value this October, falling over 5.8% as quarterly earnings heighten investor skepticism over massive artificial intelligence expenditures. Concerns over rising capital outlays were amplified by record single-day stock drops for Alphabet following search revenue weakness and Meta's plans for a record $97.5 billion fundraise, alongside fears that elevated borrowing costs will make debt-funded expansion increasingly expensive. Despite the broader market selloff, revenue across major tech firms remains robust, with strong cloud performance from Microsoft and Amazon Web Services demonstrating ongoing demand for data infrastructure. However, with J.P. Morgan forecasting global AI capital expenditure to reach $900 billion in 2026 alone, the sector's growing reliance on bond issuances and debt financing is sparking fresh caution across both equity and credit markets. Richmond Federal Reserve President Tom Barkin stated that the direction of US monetary policy remains clear given high inflation, solid demand, and low unemployment, though the pace of future interest rate increases remains open to debate. Speaking on SiriusXM, Barkin noted that a gradual approach to rate hikes allows policymakers time to assess incoming data as businesses face rising cost pressures across energy, labor, and technology investments. While the Fed held borrowing costs steady this week, new policy language and stronger-than-expected economic data have led investors to anticipate a quarter-point rate increase at the central bank's upcoming December meeting. Barkin emphasized that persistent price pressures and corporate willingness to pass along higher costs could force further policy action to prevent inflation expectations from taking root. The cost of insuring Intel Corp.'s debt against default surged to an all-time high on Friday after the chipmaker warned it expects to burn cash this year due to a weak personal computer market. Five-year credit default swaps on Intel debt widened by 17.5 basis points to a record 124.75 basis points, according to Markit data. The surge puts the credit default swaps on track to log their largest single-day jump since October 2022. Treasury yields slipped even as crude oil prices rebounded, diverging from the typical pattern where higher energy costs fuel inflation expectations and lift yields. Brent crude jumped 2.4% to $113.45 a barrel, remaining near its upper bound since the conflict with Iran intensified energy costs and broader inflationary pressures. Strategy fell 8.4% despite reporting stronger-than-expected quarterly profits, as investor sentiment was further weighed down by the announcement that its chief financial officer will resign next week for personal reasons. Coinbase Global dropped 13.3% despite delivering quarterly results that topped Wall Street expectations. Cryptocurrency stocks plunged as a major security breach at Binance impacted over $6 billion worth of crypto assets. A US blockchain intelligence firm attributed the attack to a North Korean unit, pushing the price of Bitcoin down toward $77,000 from its earlier peak of over $86,000 this month. Intel tumbled 28.9% and is flirting with its worst day since 1974, even though the chipmaker reported a stronger profit for the latest quarter than analysts expected. It gave a forecast for profit in the final three months of this year that fell far short of analysts’ expectations. CEO Lip-Bu Tan said the personal-computer industry continues to feel pressure, which hurts demand for Intel’s CPUs. Amazon fell 2% after reporting a weaker profit for the summer than analysts expected. Potentially more concerning for investors was Amazon’s reporting that it burned through $42.4 billion of cash over the prior 12 months, according to a measure called free cash flow. It spent $94.8 billion on property and equipment, primarily through investments in artificial-intelligence technology. The Nasdaq opened at its lowest level in more than two months on Friday, after Amazon's aggressive AI spending plan and Intel's cash burn warning intensified investor concerns about escalating costs of AI infrastructure buildout and the return timeline. Read more: Nasdaq plunges 2.3% to over two-month low Copper prices fell on Friday and were set to log their first monthly decline since June, pressured by a broader retreat in risk appetite following concerns over massive artificial intelligence spending. Benchmark three-month copper on the London Metal Exchange dropped 0.9% to $14,227 a metric ton, setting the metal up for a 1% fall in October as tech sector anxieties and rising oil prices prompted investors to move toward safer assets like bonds. Despite the monthly decline, near-term supply tightness continues to support prices, with elevated cash premiums and China's Yangshan copper premium remaining near a 13-year high. Supply pressures were further underscored by Rio Tinto pausing underground operations at its Oyu Tolgoi mine in Mongolia due to seismic activity and border transit delays, while tin also slipped to a six-month low on similar AI spending concerns. - Ipek Ozkardeskaya, senior analyst at Swissquote Bank Intel saw its stock plunge more than 25% following a warning from the chipmaker that it expects to burn cash this year. The company pointed to a sluggish personal computer market, ongoing manufacturing bottlenecks, and substantial investments required to scale up its production capacity as key drivers behind the financial strain. Alphabet slipped 0.6%, adding to its losses following a record selloff in the previous session. The decline came after the Google parent company posted disappointing search-advertising results alongside a sharp rise in cash outflows. Shares of Amazon.com dropped 6.3% in premarket trading following the company's report of a significant cash outflow during the third quarter. The decline was further fueled by management signaling a plan to increase capital expenditure next year, piling onto its already high spending levels. Despite Friday's decline, the S&P; 500 and Nasdaq remained on course for weekly gains, supported by a brief recovery in AI-linked stocks earlier in the week following Anthropic's US IPO filing. However, the Nasdaq was headed for its first monthly decline in three months. Investors also assessed expectations of more than 50 basis points of Fed rate increases by mid-2027. Elsewhere, Chevron and Exxon Mobil gained 1.5% each after beating profit estimates, while Reddit fell 19.5% following a weak user-growth outlook. The combined spending of Amazon, Alphabet, Microsoft and Meta exceeded $200 billion in the third quarter, according to Ipek Ozkardeskaya, senior analyst at Swissquote Bank. She warned that higher financing costs could absorb a larger share of the cash generated by these companies, leaving less available for expansion and debt repayment. Several companies have turned to bond markets to finance their AI investments, adding to concerns about the sustainability of such spending as borrowing costs rise. Alphabet slipped another 0.6%, extending its losses following a record selloff in the previous session. Investors remained concerned about disappointing search advertising results and rising cash outflows at the Google parent. The broader semiconductor sector also faced selling pressure, with Nvidia falling 3% and AMD declining 8.7%. Meta also reported cash burn in the September quarter, while Microsoft stood out with a stronger-than-expected cash flow despite raising $25 billion through a debt sale. Amazon shares dropped 6.3% in premarket trading after the company reported significant cash outflows in the September quarter and signalled another increase in capital expenditure next year. Intel plunged more than 25% after warning that it expects to burn cash this year, citing weak PC demand, manufacturing bottlenecks and heavy investment in expanding production. Together, the two companies risked losing around $300 billion in market value if the declines held. US stock futures came under sharp selling pressure on Friday, with Nasdaq futures falling 2.41%, as investors reassessed the cost of artificial intelligence investments. Amazon's plans for higher capital expenditure and Intel's warning of cash burn intensified concerns over the scale of spending required to build AI infrastructure and how quickly companies could generate returns. Dow futures rose 0.17%, while S&P; 500 futures declined 1.03%.
Business News›Markets›US Stocks›Wall St Guide›US Stock Market Highlights: Dow Jones crashes 500 pts, Nasdaq over 2.5% as AI cash burn fears spark tech selloff LIVE BLOG Stock Market Today Highlights Synopsis Dow Jones | Nasdaq | Stock Market Highlights: US stocks tumble as disappointing results from Intel and Amazon deepen concerns over rising AI spending and uncertain returns. The Nasdaq suffers its biggest single-day percentage drop since June 5, while the S&P 500 and Nasdaq end October lower. The Dow, however, posts a monthly gain. Wall Street ends sharply lower on Friday as disappointing quarterly results from Intel and Amazon trigger a broad technology selloff. Investors question whether massive AI investments will generate adequate returns, putting pressure on chipmakers and dragging the Nasdaq to its steepest daily decline since June 5. - Nasdaq plunges 2.84%, its biggest one-day percentage drop since June 5. - S&P; 500 falls 1.80%, while the Dow drops 1.09%. - S&P; 500 and Nasdaq post monthly losses, while the Dow ends October higher. - Coinbase, Strategy and Robinhood slide amid reports of a $6.3 billion hack at Binance. Show more 1 New Update More than $2 trillion in market value is said to have been wiped out from the technology-heavy Nasdaq 100 which cracked over 4% on Friday and nearly 6% this month, as Big Tech earnings have intensified investor concerns over whether massive investments in artificial intelligence (AI) will generate returns quickly enough. Read more: Nasdaq 100 sinks as AI jitters erase $2 trillion S&P; 500 lost 139.30 points, or 1.80%, to end at 7,580.21 points, while the Nasdaq Composite lost 747.73 points, or 2.84%, to 25,440.68. The Dow Jones Industrial Average fell 571.98 points, or 1.09%, to 51,770.58. Read more: Dow Jones crashes 500 pts A planned White House hearing investigating mortgage fraud allegations against Federal Reserve Governor Lisa Cook has been postponed to December. Kevin Hassett, top economic adviser to President Donald Trump, stated that administration officials worked closely with Cook's legal team to arrange a meeting to review evidence, though Cook's representatives have not publicly confirmed a finalized date. The move follows a June Supreme Court ruling establishing that the president cannot remove a Fed governor at will, requiring instead a demonstration of cause and an opportunity for defense. Cook's defense counsel previously stated she would be unavailable until after the central bank's December policy-setting meeting. Her legal team has rejected the allegations as a pretext to oust her over monetary policy stance, noted by her recent dissent favoring a rate hike to curb persistent inflation. Trump has long criticized the Federal Reserve's rate decisions, while Hassett defended Federal Reserve Chairman Kevin Warsh's handling of board dissent as the administration proceeds with its three-person inquiry panel. Binance's assurances that customer funds remain secure following a record $6.3 billion cyber heist face widespread skepticism, as the incident exposes fundamental vulnerabilities in cryptocurrency infrastructure. The theft, executed in part via a single compromised employee laptop, underscores structural security flaws in centralized platforms, while subsequent emergency measures—including withdrawal freezes and asset lockups—highlight the centralized power exerted by major industry players. Although Binance pledged to cover losses using its emergency reserve fund, the platform's $1 billion Bitcoin-denominated backing falls significantly short of the unrecovered stolen assets. Analysts warn that emergency asset freezes by stablecoin issuers run counter to core principles of decentralization, while persistent cybersecurity risks and structural vulnerabilities threaten to undermine broader efforts to attract institutional investors. Bank of America Corp. has hired Eddie Manheimer from Morgan Stanley as head of global power and utilities investment banking, strengthening its coverage of energy and infrastructure dealmaking tied to artificial intelligence expansion. Manheimer previously served as head of North America power and utility investment banking at Morgan Stanley, advising on major transactions for firms such as Eversource Energy, Centerpoint Energy, and Iberdrola SA. Manheimer will assume his new role in January and report to Todd Giardinelli, head of global natural resources and energy transition investment banking. The recruitment aligns with Bank of America's strategy to bolster advisory and financing capabilities for data center power demands and digital infrastructure growth, alongside internal promotions that saw Patrick de Loe and Ahmad Masud named chairs of global power and utilities investment banking. Chevron expects to supply power to a major Microsoft Corp. data center project in West Texas on schedule despite Governor Greg Abbott’s broader suspension of digital infrastructure permits. Chief Financial Officer Eimear Bonner stated that ongoing permitting, engineering, and financing work remain on track for initial power delivery in 2028, with full operations ramping up by 2031. Known as Project Kilby, the Permian Basin development involves a partnership between Chevron and Joulent LLC to supply natural gas for Microsoft’s facility amid local opposition to regional data center expansion. Chevron noted that the project complies with state standards because it will generate its own off-grid power to avoid inflating consumer electricity bills and utilize non-potable water for cooling to protect local drinking supplies. Investors are returning to long-dated government debt as risk-free payouts near multi-decade highs prove increasingly difficult to ignore amid equity market volatility. Ten-year US Treasury yields peaked near 5.4% this month while Japanese yields hit a 30-year high of 3.14%, prompting major asset managers including JPMorgan, Aegon, and Allianz GI to extend duration. A global gauge of government bonds maturing in 10 years or more returned 2.68% in October, marking its first month of outperformance against short-term debt since February as investors seek safe-haven assets away from tech sector pressures. Despite the recent rally, fund managers caution that broader risks including energy-driven inflation, fiscal deficits, and political uncertainty surrounding the US midterm elections remain unresolved. Doubts linger over Federal Reserve policy commitments and European fiscal stability, leading some strategists to view the price surge as a temporary pause rather than a permanent structural turn. However, the retreat in yields provides timely relief for the US Treasury Department ahead of its quarterly refunding announcement, while also spurring demand for long-dated Japanese, UK, and German sovereign debt. - Oliver Pursche, senior vice president at Wealthspire Advisors in New York North Korean cybercriminals are believed to be behind the record $6.3 billion hack of Binance, marking an unprecedented escalation in digital-asset thefts attributed to state-sponsored actors. Blockchain intelligence firm TRM Labs and security experts identified the elite hacking unit TraderTraitor—previously blamed for the $1.5 billion Bybit attack—as the likely culprit, noting that the group stole roughly as much in a single evening as it had over the preceding six years combined. Security analysts indicate the complex attack targeted a software engineer's laptop to compromise Binance's withdrawal systems, reflecting a sharp evolution in tactics powered by artificial intelligence tools for network reconnaissance and social engineering. The incident underscores lingering security vulnerabilities across centralized crypto exchanges, with former regulatory officials highlighting that traditional banking friction, oversight, and regulatory controls continue to offer protections against high-value thefts that remain absent in decentralized finance. Bitcoin fell below $77,000 for the first time in over a month, reaching a low of $76,300 after Binance Holdings revealed the largest crypto theft on record, involving an attempted $6 billion breach. The security failure triggered widespread liquidations across the digital-asset sector, driving Binance's BNB token down 7% and erasing $1.3 billion in bullish crypto positions over a 24-hour period amidst a broader macroeconomic selloff in technology equities. Binance suspended withdrawals and allocated $6.34 billion in corporate funds to cover customer losses, while US law enforcement agencies including the FBI and Secret Service launched investigations to trace the stolen assets. Major stablecoin issuers Tether and Circle swiftly froze a combined $2.3 billion in linked funds, but market strategists warn that persistent security breaches and counterparty risks could deter institutional investors from maintaining exposure to the asset class. - Joe Tigay, portfolio manager at Equity Armor Investments US energy firms kept the total oil and gas rig count unchanged at 603 for the week ending October 30, according to data from energy services firm Baker Hughes. While the total count remains up 10% from the same period last year, a gain of two oil rigs to 462 was offset by a decline of two gas rigs to 130, leaving overall drilling activity flat for a third consecutive week. The steady rig count comes as the US Energy Information Administration projects domestic crude output to rise from 13.7 million barrels per day in 2025 to 13.9 million bpd in 2026, driven by higher West Texas Intermediate crude prices following Iran war supply disruptions. EIA also forecasts natural gas production to expand from 107.6 billion cubic feet per day to 112.2 bcfd in 2026, fueled by accelerating demand from power-intensive data centers and expanding liquefied natural gas export infrastructure. Intel Corp. stock plummeted up to 30% in its worst intraday decline since 1982 after issuing a fourth-quarter outlook that missed Wall Street projections across revenue and earnings. The chipmaker expects fourth-quarter sales of $15 billion to $16 billion against analyst expectations of $17 billion, dragged down by an ongoing slump in the personal computer market, soaring memory chip prices, and a $300 million revenue hit from a temporary factory closure in Israel. Chief Executive Officer Lip-Bu Tan warned that PC industry weakness will persist through the first half of 2027, even as third-quarter revenue rose 21% to $16.5 billion driven by a 78% surge in data center and artificial intelligence sales. To support its long-term turnaround, Intel plans to expand capital spending to $20 billion in 2026 and increase investments further in 2027, though Chief Financial Officer Dave Zinsner cautioned that heavy manufacturing outlays will prevent the company from generating free cash flow next year. Federal Reserve Bank of St. Louis President Alberto Musalem stated on Friday that his primary focus is preventing elevated price pressures from spreading further across the broader economy and triggering second-round inflationary effects. Speaking before the Shadow Open Market Committee in New York, Musalem emphasized the need to contain core services inflation, excluding housing, to ensure cost pressures do not worsen. Musalem's remarks underscore ongoing concerns within the central bank regarding persistent service-sector price increases, even as overall monetary policy remains under tight market observation. Policymakers continue to monitor whether targeted cost surges could embed themselves into broader inflation expectations and necessitate further policy action. Gold tumbled to a one-year low below $3,897 an ounce on Friday, while silver, platinum, and palladium sank deep into technically oversold territory amid a global tech stock selloff. Analysts attributed the sharp decline across the precious metals complex to forced liquidations and margin calls as investors sold liquid assets to cover equity losses fo
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