The estimated $6.3 billion Binance security breach has intensified concerns across cryptocurrency markets, while disappointing earnings guidance and uncertainty surrounding artificial intelligence spending have triggered a sharp decline in technology stocks. The Invesco QQQ ETF dropped more than 2% as investors reassessed corporate growth expectations.

Gold Breaks Below $4,000 as Silver Extends Its Decline

Gold and other precious metals continued losing ground on Friday, despite weakness across global equity markets that would typically encourage investors to seek safe-haven assets.

Gold declined 1.5% to approximately $3,970 per ounce, extending its months-long correction from a peak above $5,300 earlier this year.

Silver dropped 4.3% to around $50 per ounce, marking a decline of more than 50% from its February high above $100.

Platinum and palladium also recorded substantial losses, continuing the sharp reversals seen across the precious metals complex.

French Economy Unexpectedly Shrinks in Third Quarter

France’s economic outlook weakened further after official figures showed GDP contracted 0.1% in the third quarter. The economy had previously declined 0.2% in the first quarter before recording zero growth in the second.

At the same time, inflation accelerated to 3.4% in October, compared with 3.1% in September.

Finance Minister Roland Lescure described the economy as being at a standstill and warned that failing to implement the government’s proposed budget recovery measures could lead to serious consequences.

French government bonds also came under renewed pressure. The 10-year OAT yield climbed nine basis points to 4.97%, while Germany’s 10-year Bund yield declined two basis points to 3.339%.

Bond Rally Reduces Expectations for December Fed Rate Increase

Investors moved into fixed-income markets as technology shares continued falling, pushing Treasury yields lower and reducing expectations of another Federal Reserve rate increase.

The U.S. 10-year Treasury yield fell eight basis points to 4.90% early Friday, reaching its lowest level since before the September rate decision. The two-year yield declined nine basis points to 4.655%.

The probability of a December rate hike dropped to 70%, after approaching 90% during Fed Chair Kevin Warsh’s press conference on Wednesday.

Nasdaq 100 futures fell 2.7% to their session lows. Intel plunged approximately 25%, while Amazon lost 7% following disappointing earnings outlooks.

Oil Prices Move Closer to $107 September Peak

West Texas Intermediate crude gained around 1% over 24 hours to reach $104 per barrel, approaching its highest level in 50 days.

Market participants are monitoring whether oil can move above September’s high of just under $107 per barrel, adding another variable to an already unsettled financial market.

Binance Investigation Expands Beyond Compromised Employee Laptop

Binance has identified additional potential security weaknesses during its investigation into the estimated $6.3 billion breach, suggesting the attack may have involved more entry points than initially suspected.

The exchange initially focused on a potentially compromised employee laptop that may have provided attackers with access to internal systems. However, a subsequent investigation uncovered further points of compromise, Binance said in an update on X.

The exchange confirmed that unauthorized withdrawals stopped after the suspension of withdrawal services. It also maintained its target of restoring withdrawals within approximately 45 hours.

Binance has frozen around $3 billion in stolen assets through cooperation with blockchain partners and law enforcement agencies.

CZ Criticizes Elon Musk’s Reaction to Binance Security Breach

Binance founder Changpeng Zhao asked Elon Musk to stop making jokes about the exchange’s security incident after Musk posted a grimacing emoji beneath a discussion about Binance’s losses.

Zhao said he respected Musk but considered the timing inappropriate. He also reminded the billionaire that Binance had invested $500 million in his acquisition of Twitter in October 2022.

According to Zhao, the investment is now worth more than $1 billion. Binance had originally backed the takeover with the goal of bringing cryptocurrency and social media closer together.

Zhao ended his response by asking Musk to show support rather than mock the exchange during the crisis.

Intel and Amazon Decline as Investors Question AI Capital Spending

The technology selloff intensified after Intel and Amazon delivered earnings forecasts that failed to satisfy investors, renewing concerns about the cost and profitability of large-scale AI investments.

Intel shares dropped approximately 25% after its fourth-quarter guidance disappointed the market, despite a 21% increase in revenue to $16.51 billion.

Its data center and AI business recorded 78% revenue growth, but supply shortages and weakness in the PC market clouded the outlook. Intel also increased its projected 2026 capital expenditure to $20 billion.

Amazon reported revenue of $201.9 billion, representing 12% annual growth. AWS generated $46 billion in sales, up 39%, but weaker retail demand weighed on its fourth-quarter forecast.

The company raised its 2026 capital spending projection to $220 billion. Its annual free cash flow also turned negative at $42.4 billion amid continued investment in AI infrastructure.

The weakness spread to AI-focused infrastructure companies, with Cipher Mining, TeraWulf and IREN each declining approximately 5%.

Bitcoin also remained under pressure, falling below $77,000 before recovering to just under $78,000. Meanwhile, gold slipped beneath $4,000 and silver traded near $50, highlighting the broad weakness across several major asset classes.