Overnight US stocks | After the three major indices experienced a huge shock, Bitcoin fell sharply to $86,100 at one point.

On Thursday, the three major indices fluctuated at a low level, and the losses accelerated towards the end, ultimately closing significantly lower. The Dow soared over 700 points in the morning, reaching a high of 46,856.75 points, before gradually turning downwards, hitting a low of 45,728.93 points, with a daily range exceeding 1100 points. The Nasdaq reached a high of 23,147.33 points intraday, and dropped to a low of 22,043.20 points, also with a range of over 1100 points. NVIDIA Corporation (NVDA.US) released explosive earnings results, and the US announced a jobs report confirming a strong economic foundation. Despite all signs pointing to a "risk-on" day for the US stock market, the optimism in the trading halls did not last long. There are various reasons being discussed for the reversal. Some traders pointed out concerns about whether AI is generating enough income or profits to justify its huge spending. Others say that the drop in cryptocurrencies to their lowest point since April is part of the reason for the stock market's plunge. Chris Murphy, Co-Head of Derivatives Strategy at Susquehanna International, stated, "With NVIDIA Corporation's earnings now settled, and the Fed unlikely to cut rates in December, investors are starting to question what else can drive the year-end rally. It is reported that CTA positions here are still very fragile, systematic strategies remain in a mildly net long position, and a deeper pullback will trigger automatic liquidation mechanisms for quantitative funds, potentially forcing additional selling." [US Stock Market] At the close, the Dow fell 386.51 points, or 0.84%, to 45,752.26 points; the Nasdaq fell 486.18 points, or 2.15%, to 22,078.05 points; the S&P 500 Index fell 103.40 points, or 1.56%, to 6,538.76 points. NVIDIA Corporation (NVDA.US) dropped 3.1%, rising 5% intraday, Micron Technology, Inc. (MU.US) dropped over 10%, Oracle Corporation (ORCL.US) dropped over 6%. The Nasdaq Golden Dragon Index fell 3.2%, XPeng, Inc. ADR Sponsored Class A (XPEV.US) fell 5%. [European Stocks] The German DAX30 index rose by 72.51 points, or 0.31%, to 23,276.65 points; the UK FTSE 100 index rose by 15.49 points, or 0.16%, to 9,522.90 points; the French CAC40 index rose by 27.30 points, or 0.34%, to 7,981.07 points; the Euro Stoxx 50 index rose by 23.70 points, or 0.43%, to 5,565.75 points; the Spanish IBEX35 index rose by 52.20 points, or 0.33%, to 15,978.50 points; the Italian FTSE MIB index rose by 264.51 points, or 0.62%, to 42,916.00 points. [Crude Oil] The price of light crude oil futures for December delivery on the New York Mercantile Exchange fell by 30 cents to $59.14 per barrel, a decrease of 0.5%; the price of Brent crude oil futures for January delivery fell by 13 cents to $63.38 per barrel, a decrease of 0.2%. [Cryptocurrency] Bitcoin fell over 4.5% to $87,373.5, dropping to $86,100 at one point; Ethereum fell 4.6% to $2,883.66. [US Dollar Index] The US Dollar Index, which measures the US dollar against six major currencies, fell 0.07% to 100.159 in the foreign exchange market at the end of the day. At the end of the New York exchange market, 1 euro exchanged for $1.1538, higher than the previous trading day's $1.1521; 1 pound exchanged for $1.3087, higher than the previous trading day's $1.3046. 1 US dollar exchanged for 157.54 yen, higher than the previous trading day's 157.03 yen; 1 US dollar exchanged for 0.8054 Swiss francs, lower than the previous trading day's 0.8064 Swiss francs; 1 US dollar exchanged for 1.4091 Canadian dollars, higher than the previous trading day's 1.4057 Canadian dollars; 1 US dollar exchanged for 9.5446 Swedish kronor, lower than the previous trading day's 9.5628 Swedish kronor. [Precious Metals] Spot gold fell slightly by 0.02% to $4,077.3 per ounce. [Macro News] Trump Signs Order to Waive 40% Tariff on Part of Brazilian Shenzhen Agricultural Power Group. The White House released a statement saying that President Trump has signed an order modifying tariffs on certain goods from Brazil's Shenzhen Agricultural Power Group. Trump had previously signed an executive order in July, imposing an additional 40% ad valorem tariff on specific goods from Brazil. Following negotiations with Brazilian President Lula in October and receiving supplemental information and suggestions from officials, it was deemed that certain imports from the Shenzhen Agricultural Power Group in Brazil should no longer be subject to the additional ad valorem tariffs. Taking into account the information and suggestions from officials and the state of negotiations with the Brazilian government, Trump believed it was necessary and appropriate to modify the scope of products previously subject to additional ad valorem tariffs. Therefore, the latest decision exempts certain goods from the Shenzhen Agricultural Power Group from the impact of the previous executive order, with the new adjustments applicable to goods entering the US after November 13. US Non-Farm Payrolls Accelerate Growth in September But Unemployment Rate Rises, Labor Market Still Showing Weakness. The US non-farm payrolls accelerated growth in September, with an increase of 119,000 jobs. The Bureau of Labor Statistics reported that after revising the non-farm payroll figures for August to a reduction of 4,000 jobs, September saw an increase. Economists surveyed by Reuters had previously predicted an increase of 50,000 jobs in September, following an initial increase of 22,000 jobs in August. Economists estimate that the economy currently only needs to create 30,000 to 50,000 jobs per month to match the growth of the working-age population, well below the estimated level of around 150,000 jobs needed by 2024. The unemployment rate rose from 4.3% in August to 4.4%. The increasing prevalence of artificial intelligence is eroding labor demand, with entry-level positions being hit hardest and recent university graduates struggling to find jobs. Economists point out that artificial intelligence is driving economic growth without employment. Some also believe that the Trump administration's trade policies have created an uncertain economic environment, weakening the hiring capacity of businesses, especially small ones. Gurley Worried About Rate Cuts in December, Unwilling to Overbet on "Temporary Inflation". Federal Reserve Governor Gurley indicated that he still feels uneasy about another rate cut by the Fed at its December meeting. Gurley stated on Thursday, "Inflation's really seems pretty flat; if anything, it's flashing a little bit the wrong way. So that kind of bugs me." More and more policymakers are expressing concerns about cutting rates too much with high inflation still present. Minutes from last month's meeting showed that while officials did cut rates for a second consecutive time, many were leaning against another cut in December. The Consumer Price Index rose by 3% in September, still above the Fed's 2% target. Inflation had slowed earlier this year but picked up again with the introduction of new tariffs. Gurley said, "The economy is pretty strong and I think ultimately we'll get back to the point where rates can come down quite a bit. But in the near term, I'm a little bit nervous about the idea of cutting rates dramatically ahead and hoping this is going to be temporary and inflation's going to come back." Fed Board Governor Cook Warns of Private Credit Risks, Central Bank Should Monitor Systemic Vulnerabilities. Federal Reserve Board Governor Cook stated that officials should monitor how unexpected losses in leveraged companies in private credit could spread to a broader American Financial Group system, given the increasing complexity and interconnection of these companies. She added that recent bankruptcies in the private sector of the automotive industry have also revealed unexpected losses and exposures in a wide range of financial entities, including banks, hedge funds, and specialty finance companies. Her remarks echoed concerns expressed by Federal Reserve Board Governor Bar earlier this week, who had identified private credit as a potential risk area. Cook also noted that she considered the expanding footprint of hedge funds in the US Treasury market and the valuation levels of assets as potential vulnerabilities. Despite the high asset values, the complexity of the private credit market, and the potential market disturbances caused by hedge fund activities, the financial system remains resilient. She said, "These emerging vulnerabilities are also occurring against a backdrop of very significant technological changes which may ultimately improve financial stability, but involve a transition period and potential challenges that may need to be thoughtfully and prudently addressed." Goldman Sachs Group, Inc.: Expects Stock Sell-Off Next Week to Reach $40 Billion. Goldman Sachs Group, Inc. said in a client note that the S&P 500 index dropping through a closely-watched level has given hedge funds that trade stocks by trends the green light to potentially sell nearly $40 billion in stocks in the coming week. The S&P 500 index fell below 6,725 points on Wednesday. In a note to clients sent later that day, Goldman Sachs stated that trend-following hedge funds see this critical level as a signal to either sell positions or increase short bets on further declines in stocks. Goldman Sachs estimates that globally, $39 billion in stocks may be sold off in the week following the breach of this level. If stocks continue to fall, the bank estimates that systematic trend-following hedge funds could sell up to $65 billion in stocks. Trend-following hedge funds aim to take advantage of signals of market trends starting whether upwards or downwards. These signals can be based on trading volume, price, or changes in asset prices during a trading day. Goldman Sachs's report stated that before stocks started selling off, trend-following funds had about $150 billion worth of global stocks in long positions. The last time stocks dropped below these closely watched levels was in October, with the previous occurrence being on April 2nd when President Trump announced a series of tariff proposals. [Individual Stock News] Alphabet Inc. Class C (GOOG.US, GOOGL.US) Breaks Through Apple Inc. (AAPL.US) Ecosystem Barrier, New Phones Allow Cross-Ecosystem File Sharing. According to reports, Alphabet Inc. Class C has developed a way for its latest Pixel smartphones to exchange images and other files with iPhones using Apple Inc.'s AirDrop protocol. AirDrop has been around for over a decade, built into Apple Inc.'s software platform, allowing for fast, wireless file transfers between iPhones, iPads, and Macs. Alphabet Inc. Class C has provided a similar feature for the Android system, called Quick Share. Alphabet Inc. Class C stated that it has hired a third-party security company, and the setting underwent "thorough review by our own privacy and security team." Alphabet Inc. Class C sees its new solution as another win for consumers, allowing them to easily share media regardless of the operating system they use. [Major Bank Ratings] Melius Research: Raises NVIDIA Corporation's (NVDA.US) price target from $300 to $320.