Top U.S. Stories

  • Intel crashes 29%. Shares fell 29% on Friday, their worst day since the 1970s, after the chipmaker guided to $15–16 billion in revenue against Wall Street’s roughly $17.1 billion. Why it matters: the stock was up about 150% this year, so the guidance reset expectations for the whole AI-hardware trade. The U.S. government’s roughly 10% stake lost about $12 billion in a day.
  • Amazon misses. Third-quarter revenue and earnings fell short, free cash flow was negative for a second straight quarter, and the company kept its 2026 capex forecast at $220 billion. Shares slipped 1.4%. Why it matters: investors are increasingly asking when massive AI spending turns into profit.
  • Alphabet had its worst day on record Thursday, falling more than 12%, and slid again Friday.
  • Inflation stays hot. The September PCE price index rose 3.6% year over year, with core PCE up 3.1%. Why it matters: inflation is keeping a possible December rate hike in focus.
  • Crypto shaken. Binance said a major security breach drained about $6.3 billion from its hot wallets. The company said it would absorb the losses and protect users. Bitcoin touched a six-week low.
  • Middle East. A tanker was attacked with explosives in the Strait of Hormuz, while President Trump said the war with Iran would end soon without explaining how.

Compass Insight

Friday looked like the day the market started asking for receipts. Stocks that had run on AI optimism were suddenly judged on cash flow and guidance, and the verdict was harsh. Yet money did not flee everything: energy and health care held up, and Exxon and Chevron beat estimates. The mix of 3.6% inflation, oil above $100 and debate over another rate hike is awkward for richly valued tech, because higher rates shrink the value of far-off profits. In the short run, watch Apple’s earnings on Monday and any shift in December rate-hike expectations. Over the medium term, the question is whether AI spending produces visible revenue, and whether oil cools. This is analysis, not advice.

Markets

  • Nasdaq Composite: 25,437.00, down 747.73 points (2.9%)
  • S&P 500: 7,580.07, down 140.32 points (1.8%)
  • Dow: 51,770.31, down 572.25 points (1.1%)
  • Brent crude: $113.43 a barrel, up 2.4%; WTI: $102.99
  • USD/JPY: 157.25 (Oct. 30 reference). Japan’s Nikkei 225 closed at 63,290.11, down 2.12%; the Bank of Japan held rates at 1.25%.

Stocks in Focus

  • Intel: the guidance miss, a fab explosion in Israel (about $600 million in lost revenue over two quarters) and weak PC demand.
  • Reddit, Roblox, Twilio: sold off sharply after quarterly results (down roughly 16–26%).
  • Exxon and Chevron: beat earnings estimates as oil stayed elevated.

Not a recommendation to buy or sell any security.

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Auto-generated and AI-written. Not investment advice.