Overnight US stocks | “Black Friday” swept through risky assets, NASDAQ had the worst single-day performance since June, Apple (AAPL.US) surpassed Nvidia (NVDA.US) in market capitalization and returned to number one in the world

The Zhitong Finance App learned that on Friday, the three major indices plummeted, and the NASDAQ recorded its worst single-day performance since June. The index fell about 8% from its recent high. The chip sector as a whole was under pressure, and Nvidia (NVDA.US) fell by more than 4%. According to three senior Gulf officials, the Trump administration has notified Gulf allies to prepare for a new round of short and intense military attacks that may begin on November 4 (the day after the US midterm elections). Trump hopes to further destroy Iran's nuclear program or force Iran to reach an agreement through a new round of attacks. The US has not attacked Iran again since September 1, and is still pressuring Tehran by blocking Iranian ports at sea. Gulf officials said that it is not ruled out that some Gulf countries oppose the use of US military bases to launch attacks.

[US Stocks] At the close, the Dow Jones Index fell 572.25 points, or 1.09%, to 51770.31 points; the S&P 500 index fell 140.30 points, or 1.82%, to 7580.09 points; the Nasdaq Composite Index fell 747.73 points, or 2.86%, to 25437.00 points. 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 (MU.US) fell 5.3%, Nvidia (NVDA.US) fell 4.22%, Amazon (AMZN.US) fell 1.41%, and Google (GOOGL.US) fell 1.4%. The Nasdaq China Golden Dragon Index fell 0.28%, and Alibaba (BABA.US) fell 1.54%.

[European stocks] The German DAX30 index fell 221.45 points, or 0.85%, to 25818.23 points; the UK FTSE 100 index rose 4.99 points, or 0.05%, to 10727.06 points; the French CAC40 index fell 0.58 points, or 0.01%, to 7969.42 points; the European Stoxx 50 index fell 76.22 points, or 1.23%, to 6130.85 points; Spain's IBEX35 index fell 206.14 points, or 1.09%, to be reported 18651.46 points; Italy's FTSE MIB index fell 509.86 points, or 1.02%, to 49492.50 points.

[Foreign Exchange] The US dollar index, which measures the US dollar against the six major currencies, fell 0.16% on the same day and closed at 101.878 at the end of the foreign exchange market. As of the end of the exchange market in New York, 1 euro was worth $1.1167, up from $1.1162 on the previous trading day; 1 pound was worth $1.3394, up from $1.3361 on the previous trading day. 1 US dollar was worth 157.37 yen, lower than 157.96 yen on the previous trading day; 1 US dollar was worth 0.8236 Swiss franc, lower than 0.8264 Swiss franc on the previous trading day; 1 US dollar was worth 1.3956 Canadian dollars, lower than 1.3986 Canadian dollars on the previous trading day; 1 US dollar was worth 9.8170 SEK, lower than 9.8608 on the previous trading day.

[Cryptocurrency] Bitcoin fell below the $77,000 mark. As of press time, it reported $7,6979; Ethereum reported $2,236.

[Precious Metals] Spot gold fell 3.61% to $3875.98; spot silver fell 5.79% to $49.137 per ounce.

[Crude oil] Light crude oil futures for December delivery on the New York Mercantile Exchange rose $2.12, or 2.08%, to close at $104.12 a barrel; London Brent crude oil futures for December delivery rose $2.76, to close at $117.64 a barrel, or 2.4%.

[Macro News]

Concerns about the return on AI investment are heating up, and the NASDAQ 100 is facing a technical correction for the third time this year. US stocks of the NASDAQ 100 Index fell 4.5% intraday on Friday, falling more than 10% from recent highs and facing the third technical correction this year. The cumulative decline of the index was about 3% this week. The financial results of Google's parent companies Alphabet, Amazon, Intel, and ServiceNow were poor, triggering a sell-off in technology stocks. The market has begun to re-examine the return on AI investment, and increased demand for financing from technology companies has also exacerbated sector fluctuations. Market strategists pointed out that investors no longer accept that AI investments will necessarily bring rich returns, but are beginning to pay attention to the return on capital and whether the investment principal can be recovered. The last time the US stock market fluctuated 10% three times or more in a year was in 2022.

Federal Reserve Logan: The Federal Reserve still needs to raise interest rates at least twice to accumulate 50 basis points. Dallas Federal Reserve Chairman Logan said on Friday that under the current economic outlook, the Federal Reserve will need at least two interest rate hikes of 25 basis points each to raise policy interest rates by a total of 50 basis points, then suspend interest rate hikes and evaluate the economic and financial situation to decide on the next steps. Logan participated in the Federal Reserve's 10-2 vote this week, supporting maintaining the federal funds rate target range of 3.75% to 4.00%. Logan believes that current inflation still needs to be further suppressed, and policy interest rates should be raised by at least 50 basis points to limit the economy sufficiently and push inflation back to the 2% target. She pointed out that technology investment prospects and the geopolitical situation cause financial markets to fluctuate. In this environment, gradual policy adjustments can help households, businesses, and market participants adapt to higher interest rates and reduce the risk of unnecessary drastic deterioration in economic activity. Logan also stressed that the Federal Reserve should clearly communicate policy goals, which is different from the view that Federal Reserve Chairman Walsh advocates providing such policy guidance only during times of crisis. She believes that the current financial environment still supports economic growth, and the rise in long-term borrowing costs mainly reflects investors' expectations of higher economic growth and interest rates, rather than factors that independently drag down the economy. Even if the Fed skips a meeting and does not raise interest rates, it will not change the ultimate policy goal; as long as the market understands the Fed's policy plan, the specific timing of interest rate hikes will have limited impact on long-term interest rates borne by borrowers.

Federal Reserve Mussalem: It will soon be necessary to raise interest rates again. St. Louis Federal Reserve Chairman Mussalem delivered a speech on the US economy and monetary policy before the Shadow Open Market Committee meeting. He said, “I think it is necessary to further tighten monetary policy, and action is needed soon.” Mussalem believes that the level of US inflation is still too high. If the Federal Reserve does not raise interest rates further, the risk of inflation will still bias upward. At the same time, the overall US economy and job market remain strong, and the current overall financial environment is still relaxed.

[Individual Stock News]

Apple's market capitalization overtook Nvidia and returned to number one in the world. Relatively steady investment highlights resilience. Apple (AAPL.US) closed with a market capitalization of 5.03 trillion US dollars on Friday, surpassing Nvidia (NVDA.US)'s 4.93 trillion US dollars to become the listed company with the highest market capitalization in the world. This is the first time since the end of July that Apple has surpassed Nvidia. Apple shares fell 1.2% and Nvidia fell 4.2% on the same day. The recent financial performance of Intel (INTC.US) and Amazon (AMZN.US) has heightened market concerns about the return on AI's huge capital expenditure, and Alphabet (GOOG.US) and Meta Platforms (META.US) have also previously been sold off. In contrast, Apple's relatively restrained infrastructure investment and strong free cash flow made it show relative resilience in technology stock adjustments. Apple's stock price has risen 27% since this year, while Nvidia has dropped more than 10% in the past month.

Google's parent company Alphabet plans to participate in the US $185 billion “Golden Dome” program. According to people familiar with the matter, Google's parent company Alphabet (GOOG.US) is in talks with the Pentagon to participate in Trump's $185 billion “Golden Dome” (Golden Dome) missile defense program, focusing on data security, storage, network and network security capabilities to ensure that data transmission of military command and control software is not vulnerable to attacks. Related discussions are still in the early stages, and Google's internet company Aalyria is also participating in the preparation of related alliances. The Pentagon said it has yet to make a final decision on forming a new alliance or participating companies.