The $6.3 billion Binance security breach has added another layer of uncertainty to an already volatile crypto market. At the same time, disappointing corporate forecasts and concerns over rising artificial intelligence investment costs have triggered a broader technology selloff, pushing the Invesco QQQ ETF down more than 2%.
Gold Slips Below $4,000 as Precious Metals Extend Losses
Falling stock markets have failed to generate demand for traditional safe-haven assets, with gold and silver continuing their downward trend on Friday.
Gold declined 1.5% to approximately $3,970 per ounce, extending a months-long correction after reaching above $5,300 earlier this year.
Silver performed worse, dropping 4.3% to around $50 per ounce. The metal has lost more than 50% since climbing above $100 in February.
Platinum and palladium also recorded significant declines, reflecting the broader weakness across precious metals.
French GDP Contracts as Inflation Climbs to 3.4%
France’s economy unexpectedly contracted during the third quarter, raising concerns about the country’s economic outlook. Government data showed GDP declined 0.1%, following a 0.2% contraction in the first quarter and stagnation in the second.
Inflation moved in the opposite direction, accelerating to 3.4% in October from 3.1% a month earlier.
Finance Minister Roland Lescure warned that the economy was effectively at a standstill. He said failing to deliver the recovery measures included in the government’s budget could leave the country facing serious economic difficulties.
French government bond markets also experienced renewed selling. The 10-year OAT yield climbed nine basis points to 4.97%, while Germany’s equivalent Bund yield slipped two basis points to 3.339%.
Treasury Yields Fall as December Fed Hike Bets Weaken
Investors have reduced expectations for another Federal Reserve rate increase in December as the technology selloff drives demand toward government bonds.
The U.S. 10-year Treasury yield dropped eight basis points to 4.90% early Friday, reaching its weakest level since before the Fed’s September rate decision. The two-year yield also declined nine basis points to 4.655%, reflecting changing expectations for monetary policy.
The probability of a December rate hike has fallen to 70%, compared with nearly 90% during Fed Chair Kevin Warsh’s press conference following Wednesday’s meeting.
Nasdaq 100 futures dropped 2.7% to session lows, with Intel plunging around 25% and Amazon losing 7% after both companies delivered disappointing forward guidance.
WTI Crude Oil Climbs Toward $104
Oil prices added to the pressure on financial markets, with West Texas Intermediate crude rising approximately 1% over 24 hours to $104 per barrel.
The move brought WTI close to a 50-day high, while traders monitored whether the benchmark could move beyond September’s peak of just under $107.
Binance Investigation Reveals Additional Security Breach Points
Binance has identified further potential entry points in its investigation into the estimated $6.3 billion security incident, indicating that the breach may have involved more than the compromised employee laptop initially suspected.
In an update on X, the exchange said its preliminary findings had pointed toward a compromised laptop. However, subsequent investigations uncovered additional areas where attackers may have gained access.
Binance said unauthorized outflows had stopped after withdrawals were suspended. The exchange also maintained that it expected to restore the service within approximately 45 hours.
Working with blockchain partners and law enforcement, Binance has frozen around $3 billion of the stolen assets.
CZ Pushes Back Against Elon Musk’s Comments on Binance Hack
Binance founder Changpeng Zhao asked Elon Musk to stop mocking the exchange following the $6.3 billion security incident.
Musk had posted a grimacing emoji in response to a discussion about Binance’s losses and whether the exchange could afford to cover them.
Zhao responded by expressing respect for Musk but saying the timing was inappropriate. He also reminded Musk that Binance invested $500 million in his October 2022 Twitter acquisition.
According to Zhao, Binance’s investment has since grown to more than $1 billion in value. He said the original investment was intended to support closer ties between social media and cryptocurrency, before asking Musk to offer some support rather than make jokes.
Intel and Amazon Sell Off as AI Spending Faces Scrutiny
Technology shares extended their losses as investors reacted to weaker earnings forecasts and questioned whether massive artificial intelligence investments would generate sufficient returns.
Intel shares dropped approximately 25% after its fourth-quarter outlook disappointed investors, despite revenue increasing 21% to $16.51 billion. Its data center and AI business reported 78% growth, but supply limitations and weakness in the PC market clouded the outlook.
The company also raised its projected 2026 capital expenditure to $20 billion, reinforcing concerns about the growing cost of AI infrastructure.
Amazon reported revenue of $201.9 billion, up 12%, while AWS sales increased 39% to $46 billion. However, weaker retail demand weighed on its fourth-quarter forecast.
The company lifted its 2026 capital spending estimate to $220 billion. Its annual free cash flow also fell to negative $42.4 billion as investments in AI infrastructure continued to increase.
The pressure extended to neocloud and AI infrastructure companies. Cipher Mining, TeraWulf and IREN each declined approximately 5%.
Bitcoin also remained under pressure following the Binance incident, falling below $77,000 before recovering to just under $78,000. Gold and silver continued to weaken, showing that neither technology stocks nor precious metals offered much protection from the latest market turbulence.
