The S&P 500 Index ($SPX) (SPY) fell -1.82% on Friday, the Dow Jones Industrial Average ($DOWI) (DIA) fell -1.09%, and the Nasdaq 100 Index ($IUXX) (QQQ) fell -3.46%. December E-mini S&P futures (ESZ26) fell -1.76%, and December E-mini Nasdaq futures (NQZ26) fell -3.46%.
US stocks fell sharply on Friday after Intel and Amazon fell on disappointing earnings reports released Thursday afternoon. Further AI worries emerged after the Financial Times reported Friday that Blackstone told investors Anthropic may not receive an investment-grade credit rating immediately after going public. Chip stocks saw heavy losses, led by a -28% plunge in Intel. Higher oil prices also hurt stocks.
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Market sentiment was also hurt by news of a $6.3 billion heist at the Binance exchange, which led to heavy losses in crypto stocks.
The Dow Jones Industrial Average fell by less than the S&P 500 or Nasdaq 100, as 12 of the 30 stocks closed higher. Some large-cap consumer, pharma, and oil stocks saw some defensive buying as investors rotated out of tech stocks.
Crypto-exchange Binance has frozen all withdrawals until possibly Sunday after a $6.3 billion heist on Thursday. Binance said it would reimburse customers for losses. The exchange holds some $135 billion of assets. North Korean hackers were blamed for the incident. Bitcoin on Friday fell by more than -2%, adding to Thursday’s loss of -3% on the initial news of the Binance heist.
Dec WTI crude oil prices rallied +2.1% on Friday as the market faces the possibility of a US military strike on Iran as soon as next week, after Tuesday’s (Nov 3) US mid-term elections. The Wall Street Journal reported Thursday that a top US commander has briefed President Trump on his military options. Meanwhile, European diesel futures rose on a report that Ukraine hit a refinery in Russia’s Samara region. Reports also cited two attacks on vessels in the Strait of Hormuz.
Stocks are supported by the prospect of solid quarterly earnings. According to data compiled by Bloomberg Intelligence, Q3 S&P 500 earnings are expected to climb by +31% from a year earlier, up from a July estimate of 22%. As of Thursday, 286 of the S&P 500 companies have reported results, with 82% beating estimates.
Overseas stock markets closed lower. The Euro Stoxx 50 closed down -1.22%. China’s Shanghai Composite closed down -1.44%. Japan's Nikkei-225 Stock Average closed down -2.12%.
Interest Rates
December 10-year T-notes (ZNZ6) rose by +14.5 ticks. The 10-year T-note yield fell -1.0 bp to 4.927%, adding to Thursday’s -8.1 bp decline. T-note prices rose on safe-haven demand with the sharp sell-off in the stock market and crypto assets. T-note prices were undercut by the rally in crude oil prices, although the 10-year breakeven inflation expectations rate fell -0.6 bp to 2.343%.
The FOMC at its 2-day meeting that ended Wednesday left its federal funds rate target unchanged at 3.75-4.00%, as the market expected. The markets are now pricing in a 73% chance of a +25 bp rate hike at the FOMC’s next meeting on December 8-9.
European government bond yields declined. The 10-year German bund yield fell -3.3 bp to 3.322%. The 10-year UK gilt yield fell -1.0 bp to 5.284%.
The ECB at its meeting Thursday left its deposit rate unchanged at 2.50%, as the market expected. The markets are now pricing in an 82% chance of a +25 bp rate hike at the ECB’s next policy meeting on December 17.
US Stock Movers
The Magnificent Seven all fell on Friday, led by a -4.2% plunge in Nvidia (NVDA).
Amazon.com (AMZN) fell -1.4% on Friday, trimming its losses after earlier falling more than -5%. Amazon fell after its quarterly report Thursday afternoon showed larger-than-expected capital spending on an AI buildout and slower growth in its core e-commerce business. The market was disappointed with Q4 operating income guidance of $28.5-33.5 billion, with a midpoint below the consensus of $32.99 billion. The market was also concerned that Amazon spent more than $77 billion on capex in Q3 to build data centers and pursue AI services.
Chip stocks were slammed, with the iShares Semiconductor ETF (SOXX) falling -8.2%. Intel (INTC) was the main driver of the chip sell-off, with a decline of -28%. Qualcomm (QCOM) fell more than -11%. AMD (AMD) and Marvell (MRVL) fell more than -10%.
Intel (INTC) fell -28% after releasing a disappointing earnings report Thursday afternoon after the stock market closed. Even after Friday’s plunge, however, Intel’s stock is still roughly three times higher than it was in mid-2025. Intel missed revenue expectations due to a severe slump in the PC market and supply-chain delays with data center components. Intel guided for $15-16 billion of Q4 sales, below the market consensus of $17 billion, and Q4 earnings of 25 cents per share, below the consensus of 43 cents.
Bitcoin (^BTCUSD) fell -2% on Friday, adding to its -3% decline on Thursday. Crypto stocks fell sharply on another black eye for crypto security with the massive Binance heist. Bullish (BLSH) fell -16%, Galaxy (GLXY) fell -12% and Coinbase (COIN) fell -11%.
Oil companies saw strength on higher oil prices and positive earnings news from ExxonMobil, Chevron and BP, all beneficiaries of higher oil and fuel prices tied to the US war in the Persian Gulf and the Ukraine-Russia conflict. Valero (VLO) and Phillips 66 (PSX) rallied more than +3%. Marathon closed up +2.8%, and ExxonMobil (XOM) closed up +2.2%.
Reddit (RDDT) plunged -29% after reporting that daily active users in Q3 were
weaker than expected and below-consensus Q4 revenue guidance.
Regeneron shares (REGN) rallied +13% after a Q3 revenue and earnings beat.
Earnings Reports (11/2/2026)
Berkshire Hathaway Inc (BRK/A), Estee Lauder Cos Inc/The (EL), Axsome Therapeutics Inc (AXSM), IDEXX Laboratories Inc (IDXX), Loews Corp (L), CNA Financial Corp (CNA), Public Service Enterprise Grou (PEG), Tempus AI Inc (TEM), Entergy Corp (ETR), Choice Hotels International In (CHH), Marriott International Inc/MD (MAR), Fox Corp (FOXA), Clorox Co/The (CLX), Vornado Realty Trust (VNO), Apple Inc (AAPL), Vertex Pharmaceuticals Inc (VRTX), People Inc (PPLI), Diamondback Energy Inc (FANG), Viper Energy Inc (VNOM), Realty Income Corp (O), Healthpeak Properties Inc (DOC), Voya Financial Inc (VOYA), BWX Technologies Inc (BWXT), Janus Living Inc (JAN), Neurocrine Biosciences Inc (NBIX), Williams Cos Inc/The (WMB), SBA Communications Corp (SBAC), Palantir Technologies Inc (PLTR), Match Group Inc (MTCH), Advanced Energy Industries Inc (AEIS), Fabrinet (FN), Jazz Pharmaceuticals PLC (JAZZ), Allison Transmission Holdings (ALSN), MSA Safety Inc (MSA), Celanese Corp (CE), Equitable Holdings Inc (EQH), Corebridge Financial Inc (CRBG), Lattice Semiconductor Corp (LSCC), ON Semiconductor Corp (ON), BioMarin Pharmaceutical Inc (BMRN), Roku Inc (ROKU).
On the date of publication, Rich Asplund did not directly have a position in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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