On Friday, all three major U.S. indices closed lower while oil prices climbed, according to a market recap. Federal Reserve Chair Warsh expressed optimism about the strength of the U.S. economy, saying that despite ongoing geopolitical shocks and tightening monetary policy across nations to curb inflation, the resilience of the global economy has still surprised him. Warsh stressed that the Fed is firmly committed to price stability and that he does not favor pre-judging the outcome of policy meetings or signaling in advance what actions might be taken at remaining meetings in 2026.

For the week, the Nasdaq Composite fell more than 4%, marking its worst weekly performance since the tariff turmoil of April 2025. The Philadelphia Semiconductor Index dropped 11.4% for the week, its longest losing streak since the 2008 financial crisis, and the fifth time this year it has suffered a pullback of at least 10%, wiping out roughly $2 trillion in market value.

U.S. Stocks

At the close, the Dow Jones Industrial Average fell 175.99 points, or 0.34%, to 52,001.70. The S&P 500 dropped 84.64 points, or 1.09%, to 7,659.42. The Nasdaq Composite declined 572.99 points, or 2.14%, to 26,140.03. Apple (AAPL.US) shares rose 0.43% against the broader market decline, while CoreWeave (CRWV.US) fell 11.91%, SK Hynix (SKHY.US) dropped 6.58%, Arm (ARM.US) lost 6.94%, SanDisk (SNDK.US) slipped 6.85%, Oracle (ORCL.US) declined 4.64%, and Tesla (TSLA.US) fell 2.13%. The Nasdaq Golden Dragon China Index dropped 1.3%, with Baidu (BIDU.US) down 2.93% and Alibaba (BABA.US) down 1.83%.

European Stocks

Germany's DAX 30 rose 241.93 points, or 0.95%, to 25,624.55. The U.K.'s FTSE 100 gained 37.62 points, or 0.35%, to 10,877.97. France's CAC 40 added 22.00 points, or 0.28%, to 7,956.70. The Euro Stoxx 50 climbed 35.29 points, or 0.57%, to 6,203.55. Spain's IBEX 35 advanced 137.29 points, or 0.72%, to 19,314.99. Italy's FTSE MIB rose 453.95 points, or 0.92%, to 49,851.50.

Forex

The U.S. dollar index, which measures the greenback against six major currencies, fell 0.21% to close at 101.837. At the New York close, the euro traded at 1.1233 dollars, up from 1.1212 the previous session. The British pound was at 1.3319 dollars, up from 1.3272. The dollar was at 158.05 yen, down from 158.14. The dollar stood at 0.8242 Swiss francs, down from 0.8271. The dollar was at 1.4153 Canadian dollars, down from 1.4190. The dollar traded at 9.9192 Swedish kronor, down from 9.9597.

Cryptocurrencies

Bitcoin rose 0.82% to $81,681 as of publication. Ethereum fell 1.3% to $2,421.

Precious Metals

Spot gold fell 0.1% to $4,165.94 per ounce. Spot silver declined 0.77% to $56.986 per ounce.

Crude Oil

November-delivered light crude futures on the New York Mercantile Exchange rose $3.44 to settle at $101.41 per barrel, a gain of 3.51%. December-delivered Brent crude futures on the London ICE rose $3.94 to settle at $109.86 per barrel, up 3.72%.

Macro News

The U.S. federal budget deficit for fiscal year 2026 reached $1.99 trillion, a five-year high. Data released by the Treasury Department on October 16 showed that for the fiscal year ended September 30, the deficit widened by $217 billion year-over-year to $1.99 trillion, the highest since fiscal 2021 and the third-largest annual deficit in history. In fiscal 2026, federal revenue hit a record $5.40 trillion, up 3% year-over-year, while spending reached a record $7.40 trillion, up 6%. Debt service costs rose 12% to a record $1.36 trillion. Additionally, the U.S. Supreme Court previously struck down most of the Trump administration's tariffs, resulting in $145 billion in tariff refunds for fiscal 2026, with net tariff revenue falling 11% year-over-year to about $173 billion. The Treasury estimated the fiscal 2026 deficit at 6.2% of GDP, up from 5.8% the prior year. The deficit for September alone was $27 billion, compared with a surplus of $198 billion a year earlier.

Trump: Oil prices will fall soon; hopes Russia-Ukraine conflict ends. President Donald Trump made remarks on Russia-Ukraine and Middle East issues: "I know some details about the Russia-Ukraine conflict, and at some point I will reveal them. I want it to end. The Biden administration did many bad things on Ukraine." When asked about inflation, Trump again claimed: "Oil prices will fall very soon. Israel has been very helpful to Saudi Arabia, and the Abraham Accords are once again on the agenda for Saudi Arabia."

Treasury does not signal reduction in long-term bond issuance; yields rise. According to reports, the U.S. Treasury did not clearly hint at reducing the size of long-term bond auctions, pushing long-term Treasury yields slightly higher. Ahead of the quarterly refunding announcement on November 4, the Treasury solicited views from bond dealers on how to adjust auction sizes given future borrowing needs and investor demand. However, the Treasury did not further signal a likely near-term reduction in long-term issuance. Some investors had expected the Treasury might consider cutting long-term supply given the Trump administration's desire to压低 Treasury yields.

Jensen Huang: AI will bring transformation; current market turmoil will pass. NVIDIA (NVDA.US) CEO Jensen Huang said at an event in Berlin that the current AI market turmoil will ultimately pass for a simple reason: AI will bring transformation and have a very positive impact on every industry and every country. There is no doubt that AI development will continue, and we are still in the early stages of this process. Huang said recent market news has been shifting back and forth, but that will not change industry fundamentals. Large-scale hardware investment will ultimately pay off and ease market unease. Regarding the recent sell-off in AI chip and infrastructure stocks amid investor concerns that AI spending may not be sustainable as borrowing costs rise, Huang remains optimistic about the AI market and its impact on the broader economy. Huang said investors should focus on first principles and fundamentals and maintain a focus on long-term value.

Individual Stock News

AWS CFO: AI spending is sustainable; server investment payback period under three years. According to reports, Amazon (AMZN.US) Web Services (AWS) Chief Financial Officer John Felton said AI infrastructure and services spending is sustainable because the related investments are driving substantive innovation. Felton said AWS's AI capital expenditures are generating returns, and companies should view AI as a tool to boost productivity, not just a means to cut costs. Felton also said that as of the second quarter, AWS's order backlog was close to $500 billion, with customers ranging from large enterprises and AI labs to small and medium-sized businesses, so he is "comfortable" with the company's capital expenditure plans and stressed: "Demand is real." He also said the payback period for AWS's AI server investments is less than three years. On whether AI investment can continue to generate returns, Felton said AWS internal data shows a "roughly linear relationship" between token usage and productivity gains. AWS is currently achieving "significant return on investment and productivity gains" and plans to further expand related spending.

Bank of America plans to issue up to four tranches of investment-grade bonds, with the longest maturity at 11 years. Bank of America (BAC.US) has launched an investment-grade bond offering, becoming the third major Wall Street bank this week to tap the turbulent bond market for financing after reporting third-quarter results. According to a person directly familiar with the matter, Bank of America is marketing up to four bond tranches with maturities ranging from 3 to 11 years. The longest-dated tranche was initially priced to yield about 1.2 percentage points above Treasuries. The rare Friday debt sale comes as several companies have delayed high-grade bond issuance in recent days. Volatility in Treasury yields, driven by stronger-than-expected inflation data and market concerns about AI trades, has prompted companies to pause financing plans. Bank of America is the only one of the six major Wall Street banks that did not enter the bond market for financing in the third quarter, having raised only $17 billion so far this year, the least among the six. Its most recent bond sale was in April, when it raised $10 billion.

Apple iPhone Duo sells out quickly after pre-orders open; some orders expected to ship in December or later. Just minutes after pre-orders opened on Friday for Apple's (AAPL.US) first foldable phone, the iPhone Duo, estimated shipping times were already pushed to December or later. The rapid extension of delivery timelines indicates that strong demand and severely constrained supply may make the $1,999 device difficult to buy on its official launch day of October 23 and for some time afterward. Apple's online store showed that estimated shipping times were delayed for both color options and all storage capacity versions, covering configurations from 256GB to 2TB. Some pre-order customers said that even after pre-selecting color and storage capacity as Apple recommended to speed up the purchase process, they still encountered delivery date delays. In-store launch-day inventory at Apple retail locations also sold out almost instantly after pre-orders opened at 8 a.m. New York time. This is Apple's first foldable device. By comparison, when Apple launched the iPhone 18 Pro and Pro Max in September, consumers who ordered promptly could generally buy them smoothly, while securing an iPhone Duo this time was noticeably harder. Market research firm Counterpoint Research estimated last month that Apple will sell about 6 million iPhone Duo units this year.

Analyst Ratings

Wedbush: Cut its price target on Netflix (NFLX.US) to $90 from $105. Wells Fargo: Cut its price target on Western Digital (WDC.US) to $450 from $730. STONEX: Raised its price target on Microsoft (MSFT.US) to $600 from $525.