US stocks fall as Apple retakes lead

A sharp selloff in U.S. technology stocks spilled into cryptocurrency markets, erasing $1.5 billion in leveraged crypto positions over 24 hours as traders cut exposure to risk assets ahead of major earnings reports and the October U.S. employment data.

CoinGlass recorded the liquidations, with long positions, trades betting on higher prices, accounting for 84% of the forced closures. The scale of those losses reflected the speed of the move across equities, where semiconductor shares led a broad retreat and dragged down the Nasdaq Composite.

The Nasdaq fell 2.86% to 25,437, its biggest daily decline since June 5, leaving the index 7.8% below its Oct. 6 record close. The S&P 500 lost 1.82% to close at 7,580.07, while the Dow Jones Industrial Average dropped 572.25 points, or 1.09%, to 51,770.31.

The selloff capped a difficult month for growth stocks. The Nasdaq fell 5.3% in October, its weakest monthly showing since March 2025. For crypto markets, which have frequently traded in line with high-growth technology stocks during periods of shifting interest-rate expectations, the abrupt reduction in equity risk appetite created another test for leveraged positions.

Semiconductor stocks drive the equity retreat

Chipmakers absorbed the heaviest selling pressure. The Philadelphia Semiconductor Index dropped 7.2% to 10,688.80 and ended October down more than 15%.

Intel suffered the most severe decline, tumbling 28.58% in its largest one-day fall since 1974. The stock remained up 78% for the year, illustrating how quickly traders moved to take profits after an extended rally in companies tied to artificial intelligence infrastructure.

Advanced Micro Devices fell 10.88%, Qualcomm lost 11.12%, Micron Technology declined 5.3%, and Sandisk dropped 13.47%. Nvidia fell 4.22%, cutting its market value to about $4.93 trillion.

Apple, despite a 1.23% decline in its share price, moved ahead of Nvidia as the world's most valuable listed company. Apple's market value stood at roughly $5.03 trillion at the close, compared with Nvidia's $4.93 trillion. Apple shares gained 3% during October and were up 27% year to date.

The reversal places renewed pressure on valuations across the AI trade. Chip companies have been among the market's strongest performers, supported by expectations of sustained spending on data centers, AI models and computing capacity. Friday's move showed how quickly those expectations can be repriced when earnings, component costs and monetary policy all become immediate concerns.

Gold declines as traders seek liquidity

Gold also fell during the equity rout, undermining the idea that the metal would provide an immediate refuge from selling in technology stocks. Spot gold dropped 3.63% to $3,875.44 an ounce after reaching its lowest intraday level in more than a year.

October was gold's worst month since 2008, while silver fell below $50 for the first time since November 2025. Commerzbank attributed part of the selling to margin calls connected to falling equities, which can force traders to sell liquid holdings, including gold, to meet collateral demands.

That dynamic can affect crypto markets as well. When leveraged positions move sharply against traders, liquid assets may be sold to raise cash quickly, extending declines across markets that are otherwise driven by different fundamentals.

U.S. Treasury yields declined as the selloff intensified. The 10-year Treasury yield fell six basis points to 4.934%, while the two-year yield dropped seven basis points to 4.598%. Lower yields can ordinarily support risk assets by reducing discount-rate pressure on future earnings, but Friday's trading suggested that immediate concerns over positioning and corporate results outweighed that effect.

Earnings will test the AI trade

Attention now turns to earnings from Apple, Palantir Technologies and AMD, three companies that offer different views of technology spending and AI-related demand.

Apple is due to report fourth-quarter fiscal revenue of about $113.3 billion, based on Wall Street expectations cited in the supplied figures. Estimates range from $113.0 billion to $113.4 billion, while earnings per share are expected near $1.98 to $1.99. The company had previously projected revenue growth of 9% to 11% for the quarter, below the more than 12% growth expected by analysts.

The report will be Apple's first under Chief Executive Officer John Ternus, who took the role on Sept. 1. Traders will be watching whether higher component and storage-chip costs, along with currency movements, affect margins and the company's outlook.

Palantir is expected to report third-quarter revenue of about $2.18 billion, representing roughly 84% year-on-year growth, with adjusted earnings per share seen at $0.41. The company's own revenue guidance was $2.160 billion to $2.164 billion, alongside adjusted operating-profit guidance of $1.292 billion to $1.296 billion.

Palantir's shares had climbed about 46.5% since its previous earnings call before falling 6.27% in Friday's session. They closed at $184.11 and finished the week down 7.4%, leaving little room for disappointment in its guidance.

AMD is also scheduled to report after the close, with third-quarter revenue expected near $13.0 billion. Its results could offer a more direct reading on demand for AI processors after the semiconductor index's steep monthly fall.

Jobs data could reset rate expectations

The U.S. Bureau of Labor Statistics is scheduled to release October nonfarm payrolls data on Nov. 6. The report could influence expectations for a December interest-rate increase, which remained elevated in the supplied market outlook.

A stronger-than-expected jobs report could reinforce the case for tighter monetary policy, raising financing costs and adding pressure to assets whose valuations depend heavily on future growth. A softer report would likely prompt the opposite debate, though it could also raise concerns about weakening economic momentum.

For cryptocurrency traders, the immediate issue is less a single price level than the durability of leverage after $1.5 billion in liquidations. The combination of stressed AI valuations, closely watched earnings and a pivotal labor report leaves digital-asset markets exposed to further volatility if risk appetite continues to weaken.