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Big Tech/AI Massacre. · ANGLES.

• 0:01
  SPEAKER_00: Big Tech AI Massacre.
• 0:04
  SPEAKER_00: My Weekly Market Review, November the 1st, 2026.
• 0:10
  SPEAKER_00: The Federal Reserve was widely expected to hold the Fed funds rate steady in
• 0:14
  SPEAKER_00: a pivotal week where key data releases were set to collide
• 0:18
  SPEAKER_00: with mega cap tech earnings during the final days of campaigning before
• 0:22
  SPEAKER_00: the US midterm elections.
• 0:25
  SPEAKER_00: Things got off to a bright start on Monday morning.
• 0:28
  SPEAKER_00: Dominated by the announcement officially confirming
• 0:30
  SPEAKER_00: the upcoming blockbuster Anthropic IPO,
• 0:35
  SPEAKER_00: after just five years of existence,
• 0:37
  SPEAKER_00: the firm's quarterly revenues are now higher than those of Intel,
• 0:42
  SPEAKER_00: Uber, Coca-Cola, Netflix, or Nike.
• 0:47
  SPEAKER_00: Stocks and bonds both shifted higher as interest rates continued to ease and
• 0:51
  SPEAKER_00: the price of oil pulled back from its multi-month highs.
• 0:54
  SPEAKER_00: The stock indexes all advance to close nicely in the green.
• 1:00
  SPEAKER_00: After a solid Asian session and further energy price drops,
• 1:04
  SPEAKER_00: mostly decent earnings reports from UPS,
• 1:07
  SPEAKER_00: SoFi and Coca-Cola kept the party going on Tuesday,
• 1:11
  SPEAKER_00: although Boeing plunged after announcing more losses and a dismal outlook.
• 1:16
  SPEAKER_00: Tech and particularly the beaten down chip stocks took the lead and
• 1:20
  SPEAKER_00: the NASDAQ 100 had a very good day.
• 1:24
  SPEAKER_00: Fed decision day dawned on a huge Wednesday, with major earnings on deck for after the close.
• 1:32
  SPEAKER_00: Stocks remained in a holding pattern going into the 2pm Eastern announcement,
• 1:36
  SPEAKER_00: despite a sensational earnings report from the world's second largest chipmaker,
• 1:41
  SPEAKER_00: SK Hynix, with the market-driven probability rate hike steady at less than 10%.
• 1:50
  SPEAKER_00: As expected,
• 1:50
  SPEAKER_00: the Fed Funds rate was left unchanged at 3.875%,
• 1:55
  SPEAKER_00: with two dissents out of 12 votes, both of whom wanted a quarter point hike.
• 2:01
  SPEAKER_00: The market consensus was that inaction in October could well mean action
• 2:06
  SPEAKER_00: in December,
• 2:08
  SPEAKER_00: and the probability of a rate increase at the final meeting of
• 2:11
  SPEAKER_00: the year remains high.
• 2:14
  SPEAKER_00: It was also announced that the Fed will meet less frequently in the future
• 2:17
  SPEAKER_00: to adjust interest rates,
• 2:19
  SPEAKER_00: down from the current eight meetings a year to six by 2028.
• 2:25
  SPEAKER_00: An evasive Chairman Walsh admitted in the press conference
• 2:28
  SPEAKER_00: that inflation is too high,
• 2:31
  SPEAKER_00: but that the committee wants to see more data before pulling the trigger
• 2:35
  SPEAKER_00: on another increase,
• 2:37
  SPEAKER_00: inevitably sparking speculation that
• 2:40
  SPEAKER_00: the decision had been politically influenced ahead of the midterms by pressure
• 2:44
  SPEAKER_00: from Trump, who apparently thinks that interest rates should be below 1%.
• 2:51
  SPEAKER_00: Alphabet Google's stock price got brutalized after hours on much worse
• 2:56
  SPEAKER_00: than expected revenue and sales.
• 2:58
  SPEAKER_00: Robinhood, Samsung, and ServiceNow also underwhelmed.
• 3:03
  SPEAKER_00: But Microsoft, Oracle, Ford, and T-Mobile all surprised to the upside.
• 3:09
  SPEAKER_00: Wall Street set fire to half a trillion dollars of Alphabet Google's value when
• 3:15
  SPEAKER_00: the stock crashed by over 13% the moment the real markets opened
• 3:20
  SPEAKER_00: on Thursday morning.
• 3:21
  SPEAKER_00: And it barely recovered,
• 3:23
  SPEAKER_00: dragging down the large-cap indexes,
• 3:25
  SPEAKER_00: especially the NASDAQ 100, which crapped out by 2% in a matter of minutes.
• 3:32
  SPEAKER_00: U.S.
• 3:33
  SPEAKER_00: third quarter GDP increased at an accelerating 3.4% annualized rate according to
• 3:39
  SPEAKER_00: the preliminary estimate.
• 3:42
  SPEAKER_00: But the closely watched PCE inflation rate climbed to 3.6% annualized,
• 3:49
  SPEAKER_00: so way above the Fed's supposed 2% target.
• 3:54
  SPEAKER_00: The stock indexes stabilized somewhat as the session wore on,
• 3:58
  SPEAKER_00: but still ended up deep in the red.
• 4:02
  SPEAKER_00: The concentrated source of the problem was highlighted by the fact that fewer
• 4:06
  SPEAKER_00: than 20% of the S&P 500 companies,
• 4:10
  SPEAKER_00: mostly tech names,
• 4:11
  SPEAKER_00: closed lower on the day,
• 4:13
  SPEAKER_00: but they did so by so much that the overall index was pulled significantly lower.
• 4:20
  SPEAKER_00: After the bell,
• 4:21
  SPEAKER_00: Amazon and Intel fell well short of expectations with their reports and outlook,
• 4:27
  SPEAKER_00: but Eli Lilly and Sandisk impressed with theirs.
• 4:31
  SPEAKER_00: The big tech AI massacre snowballed dramatically on Friday,
• 4:36
  SPEAKER_00: with index heavyweights Amazon and especially Intel,
• 4:39
  SPEAKER_00: which lost 30% of its value,
• 4:43
  SPEAKER_00: getting butchered in response to their earnings and was not helped by
• 4:47
  SPEAKER_00: a massive theft of over $6 billion of client crypto assets at Binance
• 4:53
  SPEAKER_00: by North Korean hackers.
• 4:55
  SPEAKER_00: Money flooded out of tech stocks and into the only perceived safe haven of bonds,
• 5:02
  SPEAKER_00: and this sent interest rates spinning lower.
• 5:05
  SPEAKER_00: The Nasdaq 100 car crash,
• 5:07
  SPEAKER_00: which capped a brutal month for the index,
• 5:10
  SPEAKER_00: took it into official correction territory just three and a half weeks
• 5:15
  SPEAKER_00: after celebrating a new all-time high on October 6.
• 5:20
  SPEAKER_00: Crypto and gold's supposed role as useful hedges
• 5:24
  SPEAKER_00: to equities was once again completely undermined
• 5:27
  SPEAKER_00: as both asset classes got pounded even harder than stocks.
• 5:33
  SPEAKER_00: The S&P 500 and the NASDAQ 100 large cap indexes
• 5:38
  SPEAKER_00: and international stocks all ended lower for both the week and the month.
• 5:43
  SPEAKER_00: But US small caps ended October with fractional gains.