Finance, in brief

The Nasdaq Composite, the US share index full of tech companies, fell 2.6% on Thursday to 26,008.86, its worst day since June. [1][2]

The S&P 500, which tracks 500 big US companies, fell 1.2%, its worst day since July. [2] The Dow Jones index of 30 big firms closed almost unchanged. [3]

Meta, the owner of Facebook and Instagram, fell nearly 7%. [4] Its spending on AI pushed its free cash flow below zero for the first time since 2012. [5]

Free cash flow is the cash left after a company pays its running costs and its building bills. In July to September Meta spent $34.91 billion on building, more than the $32.79 billion of cash its business brought in. [6]

That left Meta's free cash flow at minus $2.12 billion, against plus $10.63 billion a year earlier. [6][4] It also raised the bottom of this year's spending plan to $135 billion, with the top kept at $145 billion. [5]

Meta is creating a new class of shares that carry no vote, which it says gives it a way to pay for its growth. [4] Wall Street now expects Meta to sell new shares to pay for its next round of building. [7]

The price of insuring Meta's debt against it not being repaid rose to a record on Thursday. [5][4] Meta's credit rating is lower than Alphabet's, Amazon's or Microsoft's, which limits how much more it can borrow. [8]

Chip shares fell hardest: the Philadelphia index of chip companies fell 6.7%, its biggest drop since 23 June. [1] Nvidia, whose chips run most AI, fell 4.4%, and AMD, another chip maker, fell 8.1%. [2]

CoreWeave, which borrowed money to buy Nvidia chips that it rents out, fell 10.1%. [3] Nvidia's boss, Jensen Huang, told CNBC there is 'a scarcity of capital': AI builders want more money than lenders have. [2]

Most shares in the S&P 500 still rose, as buyers moved from tech into firms that sell everyday goods. [9] Power and water companies rose 2%. [10]

Investors bought US government bonds for safety, and the interest rate on the ten-year bond fell about 0.17 percentage points to 4.97%. [11] It was below 5% for the first time since 23 September, and its biggest one-day fall since March 2023. [11]

That ten-year rate is the guide for many US mortgages, car loans and credit cards. [11] Before Thursday it had been at or above 5% for 19 days in a row. [12]

Why it matters. The next scheduled test is the US central bank's rate decision on 28 October: traders put the chance of a rise then below 10%, and of one in December at 91%. [18][20]

South Korea's Kospi index fell as much as 4.1% on Friday morning, then trimmed the loss to about 2%. [22] The index is heavy with memory-chip makers and is heading for a fourth week of falls. [22] Samsung Electronics fell as much as 5.1%, Japan's Nikkei index was 2% lower and China's Shanghai index fell 0.9%. [22][23] Hong Kong's Hang Seng rose 0.4%, after its worst day in seven months on Thursday. [23]

Why it matters. The Kospi is treated as a gauge of the AI trade, and it was on course for its worst close since April. [24] Chris Weston of Pepperstone, a broker, said investors are now selling even AI firms with strong finances. [23]

SK Hynix, the world's second-biggest maker of memory chips, said on Friday it had stopped plans to list its US unit, Solidigm, on a US stock market. [14] Selling Solidigm shares was meant to help pay for a new chip factory in the US. [14] SK Hynix named market conditions and its own share price, which is down about 30% this quarter. [14] South Korea's regulators had also raised concerns about protecting SK Hynix's shareholders. [25]

Why it matters. Firmus, an Australian data-centre company, cancelled a share sale of almost $5 billion this month for the same reason, and Switch and Nscale have delayed theirs. [14][26] Anthropic, an AI company, still plans to start selling its shares to investors in the week of 9 November. [26]

Brent crude, the main world oil price, rose 4% on Thursday to close at $113.17 a barrel, its highest since 4 May. [1][27] Yemen's Houthi fighters, who are backed by Iran, hit an oilfield and an airport in Saudi Arabia with drones on Wednesday. [28] Two people were killed near Saudi Aramco's Shaybah field, which pumps 1 million barrels a day and kept working. [29] Aramco told staff to leave its headquarters in Dhahran. [27] On Friday Brent was little changed at $112.96. [27]

Why it matters. Oil exports from the Gulf are back above their level before the war, Kpler data show. [28] So an analyst writing on Investing.com said traders are paying for the danger to the routes around Hormuz, not for oil already lost. [29]

President Donald Trump declared on Thursday that producing and refining oil are essential to US defence. [30] That lets him use the Defense Production Act, a law from the Cold War, to pay for oil projects, pipelines and fuel storage. [30] US petrol costs $4.29 a gallon, more than $1.25 above a year ago, and diesel is up nearly 75% to $6.30. [21] The US midterm elections are on 3 November. [30]

Why it matters. His government has already lifted sanctions on Russian diesel and drawn on the national oil reserve. [31] Energy analysts told the Guardian that drivers will not see lower prices before the vote. [21]

Hiring a giant oil tanker from the US Gulf Coast to China cost almost $60 million on Thursday, Baltic Exchange figures show. [32] Before the war that trip averaged under $8 million, and earlier this month it hit a record $79.6 million. [32] Asian refiners ordered roughly half as much US crude for November as a month earlier. [32] Valero, a big US refiner, said hauling one barrel to Asia now costs $30 to $35. [32]

Why it matters. That is about a third of the price of the oil itself, which trades near $100 a barrel. [32] So US oil sales to Asia are heading for their lowest in years. [32]

The extra interest companies pay over governments rose to as much as 1.29 percentage points on a Bloomberg index, the widest since May 2025. [33] On Friday the dollar bonds of Asian companies showed the same rise. [33] Insuring $100 of CoreWeave's debt against it not being repaid cost about $10.66 a year on 21 October, CNBC found. [34] For Oracle, a big cloud company, it was about $3.08, up from $1.41 in January. [34]

Why it matters. Lenders are also charging more to heavily indebted governments, and Moody's, a credit rating firm, is due to review France's rating on Friday. [34]

SpaceX, Elon Musk's rocket company, is finishing a $40 billion loan at much higher interest than the last time it borrowed, Semafor reported. [13] Its riskiest part is expected to pay about 8.3%, and a safer part backed by its chips about 7.75%. [13] That is more than a percentage point above what its existing bonds pay. [13] SpaceX shares fell 9% on Thursday. [7]

Why it matters. The loan is led by Apollo and Goldman Sachs, and the price may still change before it closes next week. [13] Musk has said SpaceX and Tesla, his car company, have set up committees to discuss merging. [35]

Gold fell almost 3% on Thursday to its lowest close since 20 July, and traded near $4,025 an ounce on Friday. [18] An analyst at Global X, a fund firm, said investors were selling gold to raise cash for losses elsewhere. [18] Dearer oil also raised fears of higher interest rates, which hurt gold because it pays no interest. [20] Canada's main share index fell 1%, as its materials companies, which include miners, fell 5.6%. [36]

Why it matters. Newmont, a big gold-mining company, still reported a quarterly profit of $2.48 billion, up from $1.83 billion, on higher gold sales. [37]

Bitcoin, a digital currency, fell below $83,000 on Thursday. [38] Its 4% drop was its biggest fall since June. [10] It is down by about a third from its peak above $126,000 a year ago. [38] Ether, Solana and XRP, other digital currencies, fell 2% to 3.5%. [38] US funds that hold bitcoin still took in $1.1 billion of new money this week. [38]

Why it matters. A co-founder of Orbit Markets, a trading firm, said falling shares had pushed bitcoin back into its recent range. [38] It fell on the same AI and oil worries that hit shares. [38]

Japan's yen rose 0.75% to 156.96 to the US dollar on Thursday, its strongest day in almost a month, as investors looked for safety. [17] It rose again on Friday, to about 156.20. [23] The Swiss franc, another currency people buy in a scare, also rose. [17] Traders also think Japan's government may step in to support the yen if it nears 160 to the dollar. [17]

Why it matters. A weak yen has made the fuel and goods Japan imports dearer, which helped push Japan's prices up. [39]

Prices in Japan, leaving out fresh food, rose 2.1% in the year to September, up from 1.7% in August. [39] It is the first time in nine months they are above the Bank of Japan's 2% goal. [19] A measure that also leaves out fuel, which the bank watches closely, rose 2.4%. [19] Rice became 20.6% cheaper, but dearer energy and imports pushed other goods up. [39]

Why it matters. The Bank of Japan raised its rate to 1.25%, a 31-year high, last month and is expected to hold it next week. [19] Capital Economics, a research firm, expects another rise in December. [39]

Blackstone, a giant US firm that invests other people's money in property, companies and data centres, earned $1.32 a share in July to September, above the $1.26 expected. [40] It now manages $1.368 trillion, and its shares rose 6% to 8% on Thursday. [40][10] Its bosses said data centres are earning its best returns. [41] They said limits on power and local opposition make existing data centres worth more. [41]

Why it matters. Blackstone has lent billions of dollars to CoreWeave, whose shares and bonds are falling. [41] The head of its AI team said last month that he does not know who will buy all the debt the AI building needs. [41]

Comcast, the US cable company that owns NBC and Universal, earned $1.07 a share in July to September, above the 98 cents expected. [40] Its streaming service, Peacock, made a profit for the second time since it began in 2020, helped by football's World Cup. [42] Comcast lost 144,000 home internet customers but added 368,000 mobile ones. [42] It will take a charge of more than $1 billion next quarter to reorganise. [43]

Why it matters. Comcast plans to spin off NBCUniversal and Sky, its TV and film companies, from its cable and mobile units, which it said in June would take about a year. [42] Its shares rose 4%. [40]

Procter & Gamble, which makes Tide detergent and Ivory soap, said sales rose 4% to $23.3 billion in July to September. [44][40] Its profit of $2 a share beat the $1.88 analysts expected. [40] It raised its sales growth forecast for the year to 2% to 4%, after buying Thorne, a vitamin company. [44] Its shares rose 6% on Thursday. [40]

Why it matters. Shares in firms selling everyday goods led the US market on Thursday as investors left tech. [9] P&G said it is staying on track despite dearer fuel. [37]

American Airlines now expects to lose $1 to $1.60 a share this year, after forecasting up to a 65-cent profit in July. [15] Its revenue was a record $16.34 billion in July to September, up 19.3%. [15] But its fuel bill rose 67.5% to $4.64 billion. [15] It is the fourth big US airline this month to cut its forecast, after Delta, United and Southwest. [15]

Why it matters. Air fares are more than 20% higher than a year ago. [15] American plans to add fewer flights next year. [15]

Western Digital, which makes data-storage drives, earned $4.64 a share, above the $4.09 expected, but its shares fell 6% after hours. [45] Its profit was $1.78 billion, helped by demand from AI data centres. [37] Bloom Energy, which makes fuel cells that power buildings on site, beat forecasts and raised its outlook. [45][37] Its shares still fell 5%. [45]

Why it matters. Barron's listed Bloom Energy among the AI shares that fell hardest during Thursday's trading. [9] Both companies' shares fell after the close even though their own results beat forecasts. [45]

Deckers, which owns the Hoka running-shoe and Ugg boot brands, now expects sales of $5.7 billion to $5.73 billion this year. [43] Analysts had expected $5.88 billion. [45] Its sales in July to September were $1.48 billion, below the $1.51 billion forecast. [45] Its shares fell about 7% after hours. [45]

Why it matters. Deckers expects slower growth for Hoka and Ugg as shoppers look for discounted shoes. [43]

Saab, Sweden's big defence company, took orders worth 65.8 billion kronor, about $6.6 billion, in July to September. [46] A year earlier it took 20.9 billion. [46] The total includes a 24.6 billion kronor deal for 16 Gripen fighter jets for Ukraine. [46] Its sales of 20.6 billion kronor beat forecasts. [46] Lockheed Martin, a big US weapons maker, also beat forecasts and raised its outlook on Thursday. [40]

Why it matters. European governments are turning promises to spend more on defence into orders. [46]

eBay, the online marketplace, confirmed in a filing that it will cut about 9% of its workers worldwide. [47] It expects $130 million to $150 million of charges, mostly redundancy pay, most of it in the last three months of the year. [47] It also said its results for July to September will beat its own forecast. [47] It reports them on 28 October. [47]

Why it matters. eBay says the money saved will go to its main plans. [47] The cuts come in a quarter it expects to beat its own forecast. [47]

194,000 people in the US made new claims for unemployment pay in the week to 17 October, the US Labor Department said. [48] That is close to July's 189,000, the lowest since the late 1960s. [48] Layoffs have fallen to 1% of the workforce, official figures show. [48] But employers are hiring little: jobs grew by just 29,000 in September. [48]

Why it matters. The US central bank's officials call the job market a strength and are watching prices, which are rising well above their 2% goal. [48]

Goldman Sachs, a big US bank, estimates that AI could push up to 9% of workers in rich countries out of their jobs over time, about one in 11. [49] Slower hiring could cut jobs by another 3%. [49] Its economist Joseph Briggs found that firms replace most workers with machines when the economy slows, not when it is healthy. [49]

Why it matters. So the job losses may come in a rush in the next downturn rather than slowly now, Goldman says. [49]

65% of Americans disapprove of President Trump's handling of the economy, a CNBC survey of 1,000 voters found, his worst score. [50] Eight in ten rate the economy fair or poor, the most since December 2023. [50] Gloom has risen most among Republicans, 35% of whom are now pessimistic. [50] Voters preferred Democratic control of the US Congress by 52% to 45%. [50]

Why it matters. The midterm elections are on 3 November, and high fuel prices are part of the risk for Mr Trump's party. [30]

Wealthy Chinese are opening US bank accounts and moving money there from Singapore and Hong Kong, bankers and lawyers told CNBC. [51] In July, China said it would tax income from trusts abroad owned by its tax residents at 20%. [51] Banks in Singapore and Hong Kong share account details with China's tax office under a global system, but US banks do not. [51] Lawyers warned that the tax is still owed. [51]

Why it matters. Money is slow to come the other way: foreign investment into China fell 4.3% in January to September, China's commerce ministry said. [10]

MiniMax and Zhipu, the only Chinese makers of AI models listed on a stock market, have lost a combined $150 billion of value from their peaks. [52] MiniMax fell below its first share price on Thursday, wiping out a 650% gain. [52] Zhipu is down 81% from its June high. [52] Chinese and US AI firms keep cutting what they charge to use their AI. [52]

Why it matters. Possible share sales by DeepSeek and Moonshot AI, two rivals, could pull investors' money away from the pair next year. [52]

Indonesia's president, Prabowo Subianto, said MSCI is 'trying to intimidate us'. [53] MSCI makes the share lists that many global funds copy, and on 15 October it proposed moving Indonesia to 'standalone', below even its 'frontier' group. [53] Jakarta's main index is down more than 10% since then and nearly 40% this year. [53] A final decision is due by the end of June 2027. [53]

Why it matters. Indonesia's rupiah stayed weak on Friday at 18,045 to the US dollar, hurt by dearer oil. [23] A former trade minister accused Singapore's state investors of pushing MSCI, which they denied. [53]

India's Sensex index rose 517 points early on Friday, then fell 1,279 points from that high. [54] It was the fourth day of falls, after a loss of about 2% over the three days before. [54] Shares of smaller companies fell 3.4%. [16] Swiggy, a food-delivery company, fell 13% as brokers doubted its fast-grocery business can recover. [16]

Why it matters. One wealth adviser called Brent oil near $114 the biggest risk for India. [16] Shares in the state fuel sellers BPCL, HPCL and IOCL fell up to 2.5%, because, analysts say, pump prices are not rising as fast as oil. [55]