AI spending worries hit tech as Treasuries rally and a Binance hack rattles crypto

What matters today

1. Concerns about heavy AI spending, deepened by Amazon and Intel results, are weighing on tech stocks, and Intel is heading toward its worst day in two years.
2. Treasuries rallied as investors sought safety, and the US 10-year yield fell to 4.98% from 5.05%, a one-month low.
3. Binance suffered a $6.3 billion hack, and Bitcoin fell 3.34% to about 77,285 USD while Ether dropped 3.9% over 24 hours.
4. European inflation ran hotter than expected, with Italy at 5.4% versus 4.6% expected, after the ECB (European Central Bank) signaled it is prepared to raise rates.
5. Tuesday's US midterm election and Iran's claim that four tankers hit mines in the Strait of Hormuz add political and energy-supply risk to the outlook.

Overnight

Stocks, Treasury yields and gold all fell together overnight, an unusual mix that reports tied to AI spending fears and forced selling in gold as equity losses mounted. The dollar weakened alongside yields, with USD/CAD at 1.3985 versus 1.4036 previously. The Bank of Japan held its policy rate at 1.25% as expected, and Governor Ueda said it will stick to its rate-hike path. In Europe, euro zone GDP (gross domestic product, the broadest measure of economic output) grew 0.4% in Q3 versus 0.2% expected, even as France contracted.

Top headlines

• Intel shares slide toward their worst day in two years as weak PC demand pressures its core business.MarketWatch ↗
• Treasuries rally as the AI selloff pushes investors toward safer assets, dropping the 10-year yield to a one-month low.ForexLive ↗
• Binance reports a record $6.3 billion theft and says it has begun recovering affected assets.CNBC Top News ↗
• Euro zone Q3 GDP grew 0.4% quarter over quarter, topping the 0.2% forecast despite weak spots.ForexLive ↗
• Italy's October inflation jumped to 5.4% versus 4.6% expected, driven mainly by energy prices.ForexLive ↗
• Iran says four tankers struck mines in the Strait of Hormuz and disputes US claims that shipping lanes were cleared.CNBC Top News ↗
• Chevron and Exxon topped earnings forecasts as refinery strikes pushed diesel prices and refining margins higher.CNBC Top News ↗
• Investors are positioning for possible Democratic gains in Tuesday's midterm vote, which decides control of Congress.CNBC Top News ↗