October 30, 2026: Steep Stock Losses on Tech Rout, Binance Hack, More

0:01 News when you want it with Bloomberg News Now. I'm Ed Kalecki. Steep losses Friday for the U.S. equity market. That story from Bloomberg's Charlie Pellett.

0:11 On the week, the S & P 500 index was down 0.6%. Investors are growing nervous over whether AI spending will actually pay off, and they're rushing back to defensive stocks. Intel was down 29%, the most in over four decades. due to a weak sales forecast that dragged down other chip makers. But even with that plunge, Intel this year remains up 78%. For the week, NASDAQ and the NASDAQ 100 index were both down by 2%. The Dow this week down 0.8%. In New York, Charlie Pellett, Bloomberg Radio.

0:46 Man Group chief market strategist Christina Hooper joined Bloomberg TV Friday and gave her thoughts on why the sell-off.

0:53 It used to be that these hyperscalers were just using free cash flow to finance this, and there was a lot of comfort with that. And that's how many distinguish this from the big build-out in the fiber optic networks in the late 90s, early 2000s by the telcos. This is different this time because they're not taking on debt. Well, now they're taking on debt, and financing costs are going up.

1:15 and they may not have such solid, diversified sources of income and revenue going forward.

1:22 Man Group chief market strategist Christina Hooper.

1:25 U.S.

1:25 Law enforcement joined the hunt for hackers who drained more than $ 6 billion from the Binance crypto exchange in the biggest cyber theft ever recorded. The FBI said in a statement to Bloomberg News Friday the agency is aware of the incident and is coordinating with its partners to understand the scope of the activity, evaluate potential impacts, and coordinate appropriate investigative steps. A spokesperson said Secret Service investigators are also working around the clock with the private sector to recover stolen funds. The world's largest crypto trading platform suspended withdrawals and pledged to cover all losses. Withdrawals were expected to resume by Sunday. Jay Christopher Giancarlo, former chairman of

2:07 the CFTC, talked with Bloomberg. about the future of crypto regulation.

2:11 This is a hack by a nation state. This is a state-sponsored hacking organization.

2:16 This is part of the Lazarus group, the trader-trader part of that group.

2:21 It's time for the United States to get off defense and go on to offense.

2:25 The record-setting hack has been blamed on alleged North Korean hackers who have become infamous for preying on the digital asset industry. Now, some security experts believe North Korean hackers have incorporated powerful artificial intelligence tools into their arsenal, based on the complexity and precision of recent attacks. Specifically, the hackers are believed to be using AI models for the reconnaissance and social engineering phases of their attacks, two areas that are among common stages where malicious actors are adopting AI software. S & P has taken an early step toward potentially downgrading Meta's credit rating within the next two years.

3:02 It's amid growing pressure on the tech company's balance sheet stemming from elevated spending tied to artificial intelligence. S & P lowered the outlook on Meta's AA credit rating to negative on Friday. The rating firm said the company's rising leverage, a measure of debt relative to earnings, was also a key factor in the decision. The decision signals S & P could downgrade the company within the next couple of years, but also means the bond grader is not actively considering downgrading Meta now. It comes as investors scrutinize Meta's and other industry players' ability to generate tangible returns from the massive investments they've been plowing into the AI build-out. The Trump administration has approved a $ 2. 1 billion sale of Patriot

3:45 missiles to Ukraine after the country's leader accused the U.S. of delaying shipments of the crucial air defense interceptors. The State Department said Friday it approved a foreign military sale of as many as 500 of the most advanced Patriots, which are built by Lockheed Martin, as well as spare parts, logistics and support. The approval comes after Ukrainian President Volodymyr Zelensky said the U.S. had delayed shipment of Patriot interceptors that helped his military defend against Russian ballistic missiles that have targeted cities and energy infrastructure.

4:16 A U.S.

4:16 Appeals court denied a Trump administration request to force California to set aside mail-in ballots from up to 20,000 people who the federal government claims are likely non-citizens. setting up a potential Supreme Court showdown days before the midterms. By a 2-1 vote, a panel in San Francisco Friday rejected the government's emergency request for an injunction that would have temporarily blocked the disputed ballots from being counted until the voter's citizenship status can be verified. The top federal prosecutor in Alaska confirmed Friday the existence of a criminal investigation to an alleged scheme to confuse voters by putting a candidate on the ballot with the same name as the Republican incumbent. Alaska U.S. Attorney Michael J. Heyman would not

4:59 say what potential crimes authorities are looking into or the targets of the probe, but said he encourages the public to come forward with tips that could help investigators. Heyman's announcement comes after The New York Times reported that Democratic Senate candidate Mary Peltula's campaign appeared to be involved in recruiting Dan J. Sullivan Jr. as part of an alleged effort to confuse voters. Peltula denied Thursday that she knew anything about the effort to put him on the ballot.

5:26 The Friday numbers on Wall Street, the Dow lost 572, just over 1%. NASDAQ dropped 747, 2.8%. The S & P 500 shed 140, 1.8%. The 10-year Treasury yield at 4.93%. The two-year yield is at 4.59%. That's news when you want it with Bloomberg News Now. I'm Ed Kalecki. This is Bloomberg.