The world’s largest cryptocurrency exchange, Binance, disclosed a hack that drained $6.3 billion in funds and left an additional $3 billion frozen, marking the biggest crypto theft ever recorded.
Bitcoin (^BTCUSD) tumbled more than 5% on the news, dragging crypto-related equities sharply lower and adding another damaging headline to an industry still fighting for mainstream credibility.
The breach compounded an already brutal Friday session for U.S. equities, with the Nasdaq 100 Index ($IUXX)(QQQ) bearing the heaviest losses, falling 3.46% as technology stocks absorbed the brunt of investor frustration.
The S&P 500 Index ($SPX)(SPY) shed 1.82% and the Dow Jones Industrial Average ($DOWI)(DIA) declined 1.09%, while December E-mini Nasdaq futures (NQZ26) tracked the index lower by an identical 3.46%.
Intel (NASDAQ: INTC) was the single most destructive force in Friday’s selloff, crashing more than 25% after its Thursday earnings report revealed a severe slump in PC demand and supply-chain disruptions affecting data center components.
Despite the staggering single-day loss, Intel’s shares remain approximately three times above where they traded at the start of this year, a testament to how far the stock had run before Thursday’s earnings disappointment.
The iShares Semiconductor ETF (SOXX) fell more than 6% as Intel’s collapse pulled down the broader chip sector, illustrating how heavily the industry’s fortunes remain tied to a handful of major players.
Amazon (NASDAQ: AMZN) trimmed what had been overnight losses exceeding 5% to close the gap at roughly 2% lower, after its third-quarter results revealed capital expenditure of more than $77 billion directed at data center construction and artificial intelligence services.
Investors were rattled not only by the scale of Amazon’s AI spending but also by signs of decelerating growth in its core e-commerce division, raising questions about when the company’s heavy infrastructure investments will translate into stronger returns.
A fresh wave of AI skepticism also swept through markets after the Financial Times reported that Blackstone had warned investors Anthropic might not achieve an investment-grade credit rating immediately upon going public.
Rising oil prices provided one more headwind for equities on the day, squeezing corporate margin expectations at a moment when traders were already navigating earnings shocks and crypto turmoil simultaneously.
The confluence of a record-breaking exchange hack, a landmark chip stock implosion, and renewed doubts about the near-term economics of artificial intelligence made for one of the more punishing trading sessions of the year.
