The cryptocurrency market faced renewed uncertainty following Binance’s estimated $6.3 billion security breach, while growing doubts about the returns from artificial intelligence investments triggered another wave of selling across technology stocks. The Invesco QQQ ETF declined more than 2% as investors reacted to weaker corporate forecasts and rising spending concerns.
Gold Falls Below $4,000 Despite Stock Market Weakness
Precious metals continued to decline on Friday, failing to attract investors seeking protection from falling equity markets.
Gold dropped 1.5% to approximately $3,970 per ounce, extending a correction that has lasted several months. The metal had previously reached more than $5,300 earlier this year.
Silver recorded a larger decline, losing 4.3% to trade near $50 per ounce. Its price has fallen more than 50% since exceeding $100 in February.
Platinum and palladium also experienced sharp losses, continuing the volatile price movements seen across the precious metals market.
France’s Economy Shrinks as Inflation Rises
France reported an unexpected 0.1% contraction in gross domestic product during the third quarter, adding to concerns about the country’s economic performance.
GDP had already declined 0.2% in the first quarter before showing no growth in the second quarter. Meanwhile, annual inflation accelerated to 3.4% in October from 3.1% in September.
Finance Minister Roland Lescure said the latest figures indicated that the French economy was effectively stagnating. He warned that failing to implement the recovery measures outlined in the national budget could expose the country to serious economic consequences.
French bond yields also moved higher. The 10-year government bond yield increased nine basis points to 4.97%, while Germany’s 10-year Bund yield slipped two basis points to 3.339%.
December Fed Rate Hike Expectations Ease
Investors have become less confident that the Federal Reserve will raise interest rates again in December as falling technology shares drive money toward government bonds.
The U.S. 10-year Treasury yield declined eight basis points to 4.90% on Friday, its lowest level since before the September rate increase. The two-year yield dropped nine basis points to 4.655%, reflecting weaker expectations for further monetary tightening.
Market-implied odds of a December rate hike fell to 70%, after approaching 90% during Fed Chair Kevin Warsh’s press conference following Wednesday’s meeting.
Nasdaq 100 futures also reached session lows, falling 2.7%. Intel shares plunged around 25%, while Amazon declined 7% after both companies delivered disappointing forward guidance.
WTI Oil Approaches $104 Per Barrel
Crude oil added to the pressure on global markets, with West Texas Intermediate rising approximately 1% over the previous 24 hours to $104 per barrel.
The benchmark approached a 50-day high, with traders watching whether it could break above September’s peak of just below $107.
Binance Finds More Potential Entry Points in $6.3 Billion Hack
Binance’s investigation into its estimated $6.3 billion security breach has uncovered additional potential compromise points, expanding the inquiry beyond the employee laptop initially suspected of providing attackers access to the exchange’s systems.
The exchange said its preliminary findings pointed to a potentially compromised laptop. However, further investigative work revealed other possible entry points.
Binance reported that unauthorized withdrawals had stopped after it suspended the service. It also said it remained on track to restore withdrawals within approximately 45 hours.
The exchange has recovered or frozen around $3 billion worth of stolen assets with assistance from blockchain partners and law enforcement agencies.
CZ Calls on Elon Musk to Stop Trolling Binance
Binance founder Changpeng Zhao pushed back against Elon Musk after the billionaire posted a grimacing emoji in response to a discussion about the exchange’s security breach and its ability to cover the losses.
Zhao asked Musk to stop making jokes about the incident, saying the timing was inappropriate despite his respect for the Tesla and SpaceX chief.
He also pointed to Binance’s $500 million investment in Musk’s acquisition of Twitter in October 2022. Zhao said the investment had since grown to more than $1 billion in value.
The original investment was intended to strengthen the relationship between cryptocurrency and social media, Zhao said, before asking Musk to show some support during the difficult period.
Intel and Amazon Shares Drop as AI Spending Concerns Intensify
Technology stocks continued to slide as investors questioned whether the enormous capital commitments required for artificial intelligence infrastructure would deliver adequate returns.
Intel shares fell approximately 25% after its fourth-quarter outlook disappointed investors, despite reporting 21% revenue growth to $16.51 billion.
The company’s data center and AI revenue increased 78%, but supply constraints and weaker PC demand raised concerns about its near-term performance. Intel also increased its planned 2026 capital expenditure to $20 billion.
Amazon reported a 12% rise in revenue to $201.9 billion, while its AWS cloud division generated $46 billion in sales, representing 39% growth.
However, weaker retail demand weighed on the company’s fourth-quarter outlook. Amazon also raised its 2026 capital expenditure forecast to $220 billion, while annual free cash flow declined to negative $42.4 billion amid heavy AI-related investment.
The downturn extended to companies operating in the AI infrastructure sector. Cipher Mining, TeraWulf and IREN each lost approximately 5%.
Bitcoin also remained under pressure following the Binance breach, slipping below $77,000 before recovering to just under $78,000. Precious metals offered little protection, with gold falling below $4,000 and silver approaching $50 per ounce.
