Technology stocks extended their losses for a second consecutive day as disappointing financial results from Amazon and Intel raised fresh concerns about the scale of investments in artificial intelligence. Nasdaq 100 futures dropped by 2%, with investors showing a renewed preference for safe-haven assets such as US Treasury bonds and the Swiss franc.
Amazon and Intel post major declines
Amazon and Intel, two of the most influential technology companies in the US, saw their share prices fall sharply in after-hours trading. Amazon shares slid by 7.3%, while Intel experienced a 23% drop. The significant selloff followed quarterly earnings that failed to meet market expectations, leading investors to question the sustainability of future capital expenditures, particularly those targeting artificial intelligence initiatives.
Amazon shares fell 7.3% and Intel lost 23% in after-hours trading. Following the results, the size of the companies’ capital expenditures came into question again, and the exit from AI-focused stocks accelerated.
The weakness in technology stocks also weighed on the broader market outlook. As a result, traders increased their allocations to traditional safe havens, including US Treasury securities and the Swiss franc, highlighting a risk-off sentiment among investors.
Bitcoin retreats amid Binance transaction halt
Bitcoin slipped by 0.5% to around $78,400 in the wake of these developments. The world’s largest cryptocurrency exchange, Binance, temporarily suspended deposits and withdrawals while investigating a suspected cyberattack, adding to uncertainty in cryptocurrency markets and contributing to the broader risk-averse mood.
The sudden halt of Binance’s platform activity led to increased volatility across the crypto sector, with investors remaining cautious as they awaited further information from the exchange.
Mini dictionary: Binance is the world’s largest crypto exchange by trading volume, offering a range of digital asset services, including spot and derivatives trading.
Mixed moves in commodities and global currencies
In commodities, Brent crude oil climbed 1.4% to $116.45 per barrel, following renewed fears that US military actions against Iran could disrupt energy flows. This development reinforced concerns about supply disruptions in the oil sector.
Precious metals remained under selling pressure. Gold fell below $4,000 per ounce, while silver declined by 2%, heading for its lowest close since November.
US Treasury bonds rallied across all maturities, with the Swiss franc leading gains among G10 currencies against the dollar. The Japanese yen also maintained its recent strength after the Bank of Japan left interest rates unchanged, in line with market expectations.
Bank of Japan signals historic inflation shift
At its October 30 meeting, the Bank of Japan (BOJ) kept its policy rate steady at 1.25% by a majority vote among its nine-member board. The central bank cited its desire to assess the effects of its September rate hike on economic activity and prices. Board member Hajime Takata’s proposal to raise the rate to 1.5% was rejected by most members.
The BOJ stated that core inflation, excluding temporary factors, has reached a level generally aligned with the bank’s 2% target for the first time since the price stability objective was adopted in January 2013. The central bank noted that Japan’s economy is showing signs of emerging from a prolonged deflationary period, as both wages and prices rise in tandem. The achievement of the inflation target had taken longer than expected under the ultra-loose monetary policy launched in 2013 by former Governor Haruhiko Kuroda, largely due to persistently embedded deflation expectations.
Looking ahead, the bank emphasized the need to monitor whether inflation can remain sustainably around the 2% mark. The BOJ maintained that current monetary conditions remain supportive and signaled that future rate hikes would depend on economic outlook, price trends, and financial conditions. Market participants increasingly anticipate another rate increase at the bank’s December meeting.
Recent market trends indicate that easing concerns about AI-related growth have not fully alleviated skepticism over corporate investment plans. As a result, demand for safe-haven assets—including bonds and the Swiss franc—remains strong, while declines in gold and silver suggest that investors are responding selectively as risk aversion prevails. In cryptocurrencies, Bitcoin faces further uncertainty amid the ongoing Binance situation.
