Overnight US Stocks | "Black Friday" sweeps risk assets, Nasdaq posts its worst single-day performance since June; Apple (AAPL.US) overtakes Nvidia (NVDA.US) to regain top spot as the world's most valuable company

Zhitong Finance APP has learned that on Friday, the three major indices plummeted, with the Nasdaq recording its worst single-day performance since June, retreating about 8% from recent highs. The chip sector was broadly under pressure, with Nvidia (NVDA.US) falling more than 4%. According to three senior officials from Gulf countries, the Trump administration has notified its Gulf allies to prepare for a potential new round of swift and intense military strikes on November 4 (the day after the U.S. midterm elections). Trump hopes the new strikes will further cripple Iran's nuclear program or force Iran into an agreement. Since September 1, the U.S. has not launched further strikes against Iran but continues to pressure Tehran via a naval blockade of Iranian ports. Gulf officials said some Gulf countries may oppose U.S. forces using their domestic bases to launch attacks.

[U.S. Stock Market] At the close, the Dow Jones Index dropped 572.25 points (-1.09%) to 51,770.31; the S&P 500 fell 140.30 points (-1.82%) to 7,580.09; the Nasdaq Composite Index fell 747.73 points (-2.86%) to 25,437.00. Intel (INTC.US) fell 28.58%, SanDisk (SNDK.US) fell 14.1%, Qualcomm (QCOM.US) fell 11.12%, AMD (AMD.US) fell 10.88%, Micron Technology (MU.US) fell 5.3%, Nvidia (NVDA.US) fell 4.22%, Amazon (AMZN.US) dropped 1.41%, and Google (GOOGL.US) declined 1.4%. The Nasdaq Golden Dragon China Index dropped 0.28%, and Alibaba (BABA.US) fell 1.54%.

[European Stocks] The German DAX30 Index fell 221.45 points (-0.85%) to 25,818.23; the UK FTSE 100 Index rose 4.99 points (+0.05%) to 10,727.06; the French CAC40 Index decreased by 0.58 points (-0.01%) to 7,969.42; the Euro STOXX 50 Index fell 76.22 points (-1.23%) to 6,130.85; Spain's IBEX35 Index dropped 206.14 points (-1.09%) to 18,651.46; and Italy's FTSE MIB Index declined 509.86 points (-1.02%) to 49,492.50.

[Foreign Exchange] The US Dollar Index, which measures the dollar against six major currencies, fell 0.16% to close at 101.878 in the late Forex market. By the end of trading in New York, 1 Euro exchanged for 1.1167 US dollars, up from 1.1162 the previous session; 1 British Pound for 1.3394 US dollars, up from 1.3361; 1 US dollar for 157.37 Japanese Yen, down from 157.96; 1 US dollar for 0.8236 Swiss Francs, down from 0.8264; 1 US dollar for 1.3956 Canadian Dollars, down from 1.3986; and 1 US dollar for 9.8170 Swedish Krona, down from 9.8608.

[Cryptocurrency] Bitcoin fell below the $77,000 mark, quoted at $76,979 at the time of writing; Ethereum traded at $2,236.

[Precious Metals] Spot gold fell 3.61% to $3,875.98; spot silver dropped 5.79% to $49.137/ounce.

[Crude Oil] The price of light crude oil futures for December delivery on the New York Mercantile Exchange rose $2.12 to close at $104.12 per barrel, up 2.08%; December Brent crude futures in London rose $2.76 to close at $117.64 per barrel, an increase of 2.4%.

[Macro News]

Rising Concerns About AI Investment Returns: Nasdaq 100 Faces Third Technical Correction This Year. The Nasdaq 100 briefly dropped 4.5% during Friday’s U.S. session, falling more than 10% from its recent high and facing its third technical correction this year. The index was down roughly 3% for the week, as disappointing earnings from Alphabet, Amazon, Intel, and ServiceNow triggered a sell-off in tech stocks. The market is starting to re-examine the return on investment in AI, while increased financing needs by tech firms have also intensified volatility in the sector. Market strategists pointed out that investors no longer take for granted that AI investments will guarantee high returns, shifting focus to capital return rates and whether their principal investments can be recovered. The last time U.S. stocks experienced three or more 10% swings in a single year was 2022.

Fed's Logan: At Least Two More Rate Hikes, Totaling 50 Basis Points, Are Needed. Dallas Fed President Logan stated on Friday that in the current economic outlook, the Fed needs at least two more rate hikes of 25 basis points each, totaling 50 basis points; after that, rate hikes would be paused and the economic and financial situation assessed to determine next steps. This week, Logan participated in a 10–2 Fed vote to keep the federal funds rate target range at 3.75% to 4.00%. Logan believes inflation still needs to be further restrained, and the policy rate should rise by at least 50 more basis points to sufficiently limit the economy and push inflation back to the 2% target. She noted that the outlook for tech investment and geopolitical tensions are creating volatility in financial markets. In this environment, gradual policy adjustment helps households, companies, and market participants adapt to higher rates and reduces the risk of unnecessary severe economic downturns. Logan also stressed that the Fed should provide clear communication of policy goals, differing from Chair Walsh’s view that such guidance should be provided only during crises. She believes current financial conditions still support economic growth, and higher long-term borrowing costs mainly reflect investor expectations for economic growth and higher rates, not an independent drag on the economy. Even if the Fed skips a meeting, not raising rates once does not change the ultimate policy goal; as long as markets understand the Fed’s plans, the timing of hikes has limited effect on borrowers’ long-term rates.

Fed's Musalem: Another Rate Hike Needed Soon. St. Louis Fed President Musalem commented ahead of the Shadow Open Market Committee meeting on the U.S. economy and monetary policy: "I believe it is necessary to further tighten monetary policy, and action needs to be taken soon." Musalem believes U.S. inflation remains too high, and if the Fed does not continue to hike, upside risks to inflation persist. Meanwhile, the U.S. economy and job market remain strong, and overall financial conditions are still accommodative.

[Individual Stocks News]

Apple’s Market Cap Surpasses Nvidia to Reclaim Global Top Spot, Showing Relative Investment Resilience. On Friday, Apple (AAPL.US) closed with a market cap of $5.03 trillion, surpassing Nvidia’s (NVDA.US) $4.93 trillion and returning as the world's most valuable publicly traded company. This is Apple's first time overtaking Nvidia since the end of July. That day, Apple’s stock fell 1.2%, while Nvidia dropped 4.2%. Recent earnings from Intel (INTC.US) and Amazon (AMZN.US) have heightened concerns over AI capital expenditure returns, with Alphabet (GOOG.US) and Meta Platforms (META.US) also recently sold off. By contrast, Apple’s relatively restrained infrastructure investment and strong free cash flow have made it more resilient during tech stock corrections. Year-to-date, Apple’s share price is up 27%, while Nvidia has fallen more than 10% over the past month.

Google Parent Alphabet Plans to Join U.S. $185 Billion “Golden Dome” Program. According to sources, Google parent Alphabet (GOOG.US) is negotiating with the Pentagon to participate in Trump’s $185 billion “Golden Dome” missile defense project, focusing on data security, storage, networking, and cybersecurity capabilities to ensure military command software’s data transmission is not easily attacked. The talks are still in early stages, with Google’s network company Aalyria also involved in alliance preparations. The Pentagon has stated that it has not yet made final decisions about forming a new alliance or on participating companies.