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š The Market Just Had A Meltdown
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āļø GM Munchers! Hopefully your weekend was less bumpy than the market Friday. I caught a cold, so right now my portfolio and my immune system are in a tight race to the bottom.
On todayās menu:
š The Market Just Had A Meltdown
šØ The Biggest Crypto Heist In History Just Happened
š FedEx, Rivian & Nvidia
š¤ AI Just Broke Redditās Business Model
š How AI Stocks Performed In October
Fridayās numbers:
S&P 500 | 7,580 | -1.82% |
Nasdaq | 25,437 | -2.86% |
Dow Jones | 51,770 | -1.09% |
Bitcoin | ~$77,700 | -4.10% |
BREAKING NEWS
š The Market Just Had A Meltdown
Friday was very ugly. Olain and simple. The tech-heavy Nasdaq cratered, falling as much as 4% at one point before closing down about 3%, its worst day since early June. By some measures, roughly $1.7 trillion in market value got wiped out. The selling was so violent and chaotic that the stock market briefly traded like a crypto meme coin, with huge, stomach-churning swings in names that are supposed to be rock-solid blue chips.
The damage was staggering in spots. Intel got absolutely demolished, crashing nearly 30% for its worst single day since 1974. Dell dropped over 10%, and chip stocks across the board got hammered. It capped off the Nasdaqās worst month since March 2025.
So what caused the collapse? Two things, really. First, Intel issued a brutal forecast for the months ahead, citing weak demand for PCs, supply problems, and even a factory accident. But the bigger story is the one we have been tracking all month: fear about AI spending. After Amazon, Google, and Meta all revealed they are burning through enormous piles of cash to build AI, investors finally snapped. The question on everyoneās mind is simple: when does all this spending actually pay off?
Now here is why this coming week matters so much. It is absolutely loaded with events that could either calm the panic or make it far worse.
š³ļø Midterm elections hit Tuesday. November 3 decides control of Congress, and the results could shift expectations for taxes, regulation, and spending in a big way.
š¼ The jobs report lands Friday. The October employment numbers come out November 6, and with a December rate hike looking likely, this could swing the Fedās next move and the whole marketās mood.
š» More big earnings roll in. Apple reports to start the week, and chip makers AMD and Qualcomm report too, giving fresh clues on whether the AI spending boom is paying off or not.
The Munch Take: Letās take a breath, because weeks like this test everyoneās nerves. A $1.7 trillion wipeout and a market swinging like a meme coin is genuinely unsettling, and we are not going to pretend otherwise. But here is the honest read. This selloff is not the AI story falling apart, it is investors suddenly demanding proof that the spending pays off, and that is actually a healthy thing. The businesses underneath, the ones making real money, are not broken. Intelās specific mess is its own problem, not a sign the whole sector is doomed. This coming week is huge, with the election, the jobs report, and major earnings all landing within days of each other, so expect more wild swings before any calm returns. Our approach does not change. We do not panic in the chaos, and we do not chase the fear. If this keeps dragging quality names lower, that is our shopping cue, not our exit. Stay calm, keep your watchlist sharp, and let the storm pass. The best opportunities are often born in exactly these kinds of ugly, scary weeks.
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STORY OF THE DAY
šØ The Biggest Crypto Heist In History Just Happened
Crypto just lived through its scariest day yet. At around 4pm ET on Thursday, money started vanishing from Binance, the worldās largest crypto exchange. In roughly 20 minutes, hackers made off with about $6.3 billion, making this the single biggest crypto heist of all time. For perspective, it dwarfs the previous record, the $1.5 billion Bybit hack from last year, by about four times.
Hereās the twist that makes this so important. The blockchain itself was not broken. The hackers did not crack Bitcoinās code or defeat the technology. Instead, they compromised the behind-the-scenes systems Binance uses to approve withdrawals, which let them make fake transfers look completely legitimate. In plain English, they picked the lock on the vault, not the vault itself. Investigators have linked the attack to a North Korea-backed hacking group, the same crew tied to past heists.
The good news, and it is genuinely good, is that Binance acted fast. The exchange froze withdrawals, worked with partners to freeze roughly $3 billion of the stolen funds, and promised customers would be made whole. As of the weekend, Binance said it had already restored backing for about 90% of the affected assets and started reopening withdrawals.
š§ Billions got clawed back. Stablecoin giants Tether and Circle helped freeze over $2 billion, showing that even stolen crypto can sometimes be tracked and locked down.
š The market got spooked. Bitcoin tumbled to a six-week low near $77,000 and Ether hit a two-month low, while crypto-linked stocks like Coinbase and Robinhood slid too.
š It was a trust problem. Your crypto may live on a decentralized network, but someone still has to guard the keys, and that middleman became the weak link.
The Munch Take: Letās be direct: this is absolutely horrible, full stop. Billions of dollars belonging to everyday people vanished in minutes, and our sincere hope is that every single affected customer gets made whole, which so far Binance seems committed to doing. There is a deeper lesson buried in the horror, though. Crypto was built on the dream of not needing to trust a middleman, yet most people still park their coins on an exchange for convenience, which quietly hands that trust right back. The irony is painful. The technology worked perfectly, and the humans guarding the gate are where it broke. For us, this is a reminder that security is not a boring side detail in crypto, it is the whole ballgame. The exchanges that can prove they protect your money will win, and the ones that cannot will lose everything. Hopefully everyone gets their money back, and hopefully the industry takes this as the wake-up call it clearly needs.
MARKET OVERVIEW
š Tasty Movers & Shakers
ā¼ļø From Investors Alley: Monthly checks from Tesla? Hereās how.
š $FDX FedEx Freight jumped 14.91% on an upbeat fourth-quarter outlook that signaled improving demand for freight shipping. When the trucks start getting busier, it is often a quiet sign the broader economy is picking up.
š $RIVN Rivian surged 6.20% after beating quarterly results and raising its full-year vehicle delivery forecast. The EV maker finally gave investors something to cheer in a brutally tough market for electric cars.
š $AZN AstraZeneca rose 6.78% on strong cancer drug sales, an earnings beat, and a new $1.5 billion cost-cutting plan.
š¾ $SNDK Sandisk sank 13.54% even after topping earnings and announcing an 8-for-1 stock split. When a stock drops on good news and a split, it usually means expectations were simply sky-high.
š $TWLO Twilio tumbled 15.48% after cutting its fourth-quarter revenue forecast. Nothing sends investors heading for the exits faster than a company lowering its own expectations.
š„ $NVDA Nvidia dropped 4.15% as Amazonās massive AI spending and shrinking cash flow dragged down the whole chip sector. When the AI spending worries flare up, the king of AI chips rarely escapes the heat.
STOCK OF THE DAY
š¤ AI Just Broke Redditās Business Model
Hereās a brutal and important one. Reddit $RDDT stock collapsed about 30% on Friday, capping a week that saw it lose roughly 44% of its value. And the reason behind the crash is one of the scariest stories in tech right now. The companyās CEO admitted that Googleās new AI search tools are strangling the traffic that keeps Reddit alive. This is AI eating one of the internetās most popular platforms from the inside out.
Hereās the twist that makes this so wild. Redditās actual earnings were strong. Revenue soared 53% to $895 million, and the company even beat profit expectations. Normally thatās a recipe for a stock to jump. Instead it got demolished, because what investors heard on the earnings call terrified them far more than the good numbers could soothe.
So what did CEO Steve Huffman say? He revealed that Googleās AI search features, the ones that spit out instant answers right at the top of the page, are drying up Redditās traffic fast. Google referrals to Reddit have been falling by more than one million visits per week. His blunt summary: āAI Mode does not drive traffic, not for us and not to anybody.ā In plain English, Google used to send people to Reddit to read discussions. Now Googleās AI just reads those discussions for you and keeps you on Google.
š The pipeline is drying up. Reddit long relied on Google sending it waves of visitors, and that stream is now shrinking fast as AI answers questions directly.
š„ Users actually dropped. Redditās US daily audience fell about 2%, a troubling sign when the whole internet is supposed to be growing.
š Itās bigger than Reddit. If AI search can gut a platform this popular, countless other websites that depend on Google traffic could be next.
The Munch Take: This is a genuinely fascinating and slightly unsettling moment, and it deserves our full attention. For decades, the deal powering the internet was simple: Google sends you visitors, and you build a business on that traffic. AI is quietly tearing up that contract. When the machine can just summarize Redditās content without sending anyone to Reddit, the whole model starts to crack. Hereās our honest take, though. Reddit is not dead, not even close. It still has something AI cannot replicate, which is a real community of actual humans talking to each other, and Huffman is right that people want that connection. The business will have to adapt, leaning harder on its own app and logged-in users instead of leaning on Googleās handouts. That transition will be bumpy and painful, exactly as Friday showed. We find this one deeply interesting to watch, because it is a live test of whether a content platform can survive in a world where AI is the new middleman. Strong brand, broken pipeline, uncertain future. This is the AI disruption story getting very real, very fast.
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