Overnight US stocks | The three major indices fell. Apple Inc. (AAPL.US) rose more than 1% against the market trend. After Alphabet Inc. Class C suffered a record plunge, Intel Corporation fell more than 20% after hours.

Overnight US stocks | The three major indices fell. Apple Inc. (AAPL.US) rose more than 1% against the market trend. After Alphabet Inc. Class C suffered a record plunge, Intel Corporation fell more than 20% after hours. On Thursday, the three major indices fell, with a sharp drop in Alphabet's stock price dragging down the technology sector. Meanwhile, US price growth accelerated. A report released by the US Bureau of Economic Analysis on Thursday showed that measured by the personal consumption expenditures price index, prices rose 0.5% month-on-month in September and 3.6% year-on-year. [US stocks] As of the close, the Dow Jones Industrial Average fell 132.54 points, or 0.25%, to 52,342.56; the S&P 500 Index fell 23.68 points, or 0.31%, to 7,720.30; the Nasdaq Composite Index fell 365.13 points, or 1.38%, to 26,184.72. Alphabet (GOOG.US) plunged 12.6%, while Apple Inc. (AAPL.US) rose more than 1%. The Nasdaq Golden Dragon China Index closed up 0.2%, while Alibaba Group Holding Limited Sponsored ADR (BABA.US) fell more than 1%. [European stocks] Germany's DAX30 index rose 372.20 points, or 1.45%, to 26,076.22; the UK's FTSE 100 index rose 31.78 points, or 0.30%, to 10,726.28; France's CAC40 index rose 83.04 points, or 1.05%, to 7,970.00; the Euro Stoxx 50 index rose 44.54 points, or 0.72%, to 6,212.35; Spain's IBEX35 index fell 30.81 points, or 0.16%, to 18,852.69; Italy's FTSE MIB index rose 193.20 points, or 0.39%, to 50,017.50. [Forex] The US dollar index, which measures the greenback against six major currencies, fell 0.17% on the day and closed at 102.037 in late foreign exchange trading. As of late trading in New York, 1 euro exchanged for 1.1162 US dollars, up from 1.1150 US dollars in the previous trading day; 1 pound exchanged for 1.3361 US dollars, up from 1.3316 US dollars in the previous trading day. 1 US dollar exchanged for 157.96 yen, down from 158.05 yen in the previous trading day; 1 US dollar exchanged for 0.8264 Swiss francs, down from 0.8290 Swiss francs in the previous trading day; 1 US dollar exchanged for 1.3986 Canadian dollars, down from 1.4021 Canadian dollars in the previous trading day; 1 US dollar exchanged for 9.8608 Swedish kronor, down from 9.9139 Swedish kronor in the previous trading day. [Cryptocurrencies] Bitcoin fell nearly 3% to $78,808 as of press time; Ethereum fell more than 3.7% to $2,269. On the news front, cryptocurrency exchange Binance may have suffered a hack involving $2.77 billion on Thursday. On-chain data showed that funds flowed from the exchange's hot wallet to unconfirmed addresses through five blockchain networks. Binance founder and former CEO Changpeng Zhao noted in a post on a social media platform that this was very likely a hack, but stressed that user funds were safe. Following the transfer, stablecoin issuers Tether and Circle (CRCL.US) respectively froze $971 million and $873 million worth of stablecoins. [Precious metals] Spot gold was at the $4,021.3 mark; spot silver was at $52.156 per ounce. [Crude oil] The price of light crude oil futures for December delivery on the New York Mercantile Exchange fell 78 cents to settle at $102.00 per barrel, a decline of 0.76%; the price of London Brent crude oil futures for December delivery fell 44 cents to settle at $114.88 per barrel, a decline of 0.38%. [Macro news] US inflation heats up again, with cost of living in focus before midterm elections. A inflation gauge closely watched by the Federal Reserve accelerated last month, indicating that prices remain elevated. With less than a week to go before the US midterm elections, the cost of living and the public's consumption burden have become core issues in the elections. The US Department of Commerce said on Thursday that consumer prices rose 3.6% year-on-year in September, higher than 3.4% in August; prices rose 0.5% month-on-month, higher than 0.3% in August and the highest level since May. After the Iran war pushed up oil and gasoline prices, the US annual inflation rate deteriorated further. US oil prices remain above $100 per barrel, compared with less than $70 before the war. Polls show that the rebound in inflation has left most voters dissatisfied with the state of the economy and with President Trump's handling of rising living costs. During the 2024 campaign, Trump promised to lower prices, including bringing gasoline prices below $2 per gallon. Currently, the US national average gasoline price is about $4.25 per gallon. Excluding volatile energy and food prices, inflation also accelerated. US economic growth accelerated in the third quarter, with the increase exceeding expectations. The US economy grew faster than expected in the third quarter, as strong consumer spending and AI-driven corporate investment offset the impact of higher oil prices caused by the Middle East conflict. Data released on Thursday showed that third-quarter GDP grew at an annualized initial rate of 3.4% year-on-year. Economists previously interviewed by Reuters had expected GDP growth of 3.2%, with market forecasts ranging from 1.0% to 4.2%. The strong economic growth stands in sharp contrast to households' pessimistic expectations for the economic outlook, reflected in Trump's approval rating hitting a new low and a sharp deterioration in consumer confidence. The report was released less than a week before the US midterm elections next Tuesday. The elections will determine control of Congress. The US economy is currently growing significantly faster than the roughly 2% rate that some Federal Reserve officials consider non-inflationary. The Federal Reserve kept its benchmark interest rate in the 3.75% to 4.00% range on Wednesday while acknowledging that inflation "remains elevated." Economists expect the Federal Reserve to raise rates in December. Federal Reserve Chair Warsh said in response to reporters' questions: "Economic activity is expanding at a strong pace." He also noted: "Although uncertainty remains, partly due to developments in the political situation of GEO Group Inc, domestic spending has been resilient." Qatar purchases LNG from the US and elsewhere to hedge against Strait of Hormuz risks. Saad al-Kaabi, CEO of QatarEnergy and the country's Minister of State for Energy Affairs, said on Thursday that the company is purchasing long-term liquefied natural gas (LNG) from the United States and other suppliers as part of a strategy to build a trading and arbitrage hedge mechanism; if future exports through the Strait of Hormuz are disrupted, this mechanism will generate revenue for QatarEnergy. Al-Kaabi said: "If there is a scenario where the strait is closed, which is the real contingency risk we want to address, then gas prices will spike immediately. At that time, QatarEnergy will be able to obtain revenue that would otherwise be unattainable." Al-Kaabi's remarks revealed Qatar's specific plan for the first time. As one of the world's largest LNG producers, Qatar hopes to use this to make up for revenue losses caused by the Iran war and guard against risks from future disruptions to shipping through the Strait of Hormuz. ECB keeps rates unchanged; Lagarde's early departure intensifies concerns over energy and France. The European Central Bank kept interest rates unchanged at 2.5%, in line with market expectations. At the same time, news that President Lagarde will leave early further intensified market concerns about energy costs and the situation in France. On interest rate policy, the European Central Bank chose to wait and see for now. Since the Iran war shocked energy markets, the European Central Bank has raised rates twice. Officials worry that inflation could rise to twice the 2% target, but have not yet found signs that higher oil and gas prices are spilling over into other areas. Meanwhile, European economic growth momentum, which had previously been unexpectedly resilient, is weakening. The market widely expects policymakers to raise rates again in December. At that time, the European Central Bank will release its latest economic forecasts to assess how severe inflationary pressures really are. The situation in France has intensified the tightening of financial conditions and is further dampening demand. Analysts expect the year-end rate hike to be the last of the European Central Bank's current hiking cycle. However, investors are betting that there will be two more rate hikes in 2027. Sources say ECB officials expect a December rate hike, followed by a pause. According to reports, three policymakers interviewed after the meeting said that European Central Bank policymakers expect to raise rates in December to address high inflation driven by energy prices, and then pause rate hikes, because rising bond yields are expected to weigh on economic growth and curb inflation. The European Central Bank kept rates unchanged on Thursday as widely expected, and President Lagarde hinted at another rate hike in December, warning that high and rising energy costs are increasing inflation risks. They said that unless energy prices suddenly fall sharply, the European Central Bank will almost certainly raise rates on December 17, lifting the deposit rate to 2.75%. However, they expect a pause after that. An ECB estimate circulating before Thursday's meeting showed that, compared with the September baseline forecast, the recent rise in bond yields is expected to reduce cumulative economic growth by 100 basis points and lower inflation by 90 basis points during 2027 to 2028. [Company news] SanDisk Q1 data center revenue up 61% quarter-on-quarter; stock to split 8-for-1. SanDisk (SNDK.US) reported fiscal 2027 Q1 revenue of $11.03 billion, versus market expectations of $10.68 billion; adjusted earnings per share of $49.51, versus market expectations of $46.27. Data center business revenue reached $4.8 billion, up 61% quarter-on-quarter, mainly driven by demand for enterprise SSDs spurred by AI infrastructure buildout. The company said demand for its products is strong and continuing to grow, and growth in the data center business has further accelerated; driven by tight supply of memory products, the company was able to raise prices significantly, with Q1 adjusted gross margin reaching 85.1%, up from 84.6% in the previous quarter. The company expects fiscal 2027 Q2 revenue of $12.2 billion to $12.6 billion, versus market expectations of about $12.3 billion, and expects adjusted gross margin of 84.5% to 85.5%. SanDisk's stock has risen more than 450% year to date and will implement an 8-for-1 stock split on November 19. Reddit plans strategic shift to limit access for logged-out users. Social forum platform Reddit (RDDT.US) said it plans to shift the user experience toward a login-first model to increase user engagement and improve the advertising business that continues to drive solid company performance growth. Reddit CEO Steve Huffman announced on Thursday that the company will eventually limit the scope of content users without registered accounts can access on the platform. Reddit plans to begin testing different approaches in markets outside the United States in the fourth quarter. This strategy marks a major shift for Reddit. For the past 20 years, the company has allowed users to browse its forums without registering an account. Chief Operating Officer Jen Wong acknowledged on Thursday that the move could limit the platform's reach in the short term, but in the long run it will bring more growth opportunities. Reddit forecast on Thursday that quarterly sales would exceed $1 billion for the first time. However, although the company expects fourth-quarter revenue of $1 billion to $1.03 billion, that outlook is below the Wall Street average estimate of $1.05 billion. Amazon.com, Inc. sharply increases spending to meet AI service demand; Q3 capital expenditure exceeds $77 billion. Amazon.com, Inc. (AMZN.US) spent more than $77 billion on property and equipment in the third quarter, far above analyst expectations (about $20 billion higher). The company is continuing to build data centers to meet growing demand for artificial intelligence services. This spending led to a free cash outflow of $42.4 billion. Amazon.com, Inc. also reported revenue up 12% year-on-year to $201.9 billion. Although sales growth at its cloud computing unit Amazon.com, Inc. Web Services (AWS) accelerated for the sixth consecutive quarter, signs of sluggish growth in its core online business are also beginning to emerge. Amazon.com, Inc. also expanded data center scale and improved its ability to provide computing power to enterprise customers. Amazon.com, Inc. said in July that, affected by tight supply of memory chips, its 2026 capital expenditure could reach $220 billion, higher than its previous forecast. Intel Corporation's fourth-quarter guidance misses expectations; shares plunge 22% after hours. Intel Corporation (INTC.US) gave a revenue forecast below analyst expectations due to a sharp decline in demand for PC processors, while the company struggles to keep up with surging demand for high-margin components used in data centers. Intel Corporation said on Thursday that fourth-quarter revenue is expected to be $15 billion to $16 billion, while the average analyst estimate was $17 billion, with some forecasts even exceeding $18 billion. Excluding certain items, the company expects quarterly earnings per share of 25 cents, while Wall Street expected adjusted earnings per share of 43 cents. Intel Corporation is facing a severe downturn in the PC market, and its important customersnotebook and desktop computer manufacturersare currently troubled by memory chip shortages and soaring component prices. Speaking about the PC market, CEO Lip-Bu Tan said: "Basically one of the main challenges is memory. Memory prices have risen sharply. I think by 2027, this will become a very serious problem for all of us. The entire market has been affected." Intel Corporation expects the PC market downturn to last at least through the first half of 2027, with a further 10% decline next year after a 12% drop in 2026. After the earnings release, Intel Corporation plunged 22% after hours. Anthropic contributes more than one-third of SpaceX revenue, becoming its largest single customer. People familiar with the matter said Anthropic is SpaceX's (SPCX.US) largest single customer, contributing more than one-third of the company's revenue in the third quarter of 2026. A filing submitted by SpaceX last week showed that about 34.5% of revenue in the previous quarter came from a customer buying computing power for its AI division, and people familiar with the matter confirmed that the customer was Anthropic. Anthropic previously signed a computing power contract with SpaceX, with total spending of up to $120.5 billion through 2029, and is expected to spend an average of about $3.1 billion per month starting in December 2026. However, Anthropic can cancel the relevant contract with 90 days' notice after January and March 2027, respectively. The report noted that SpaceX's revenue dependence on Anthropic highlights customer concentration risk in its AI computing power business; at the same time, the AI computing power leasing industry is facing pressure from tighter financing. Another major customer of SpaceX in the third quarter was a relevant government agency, contributing 16.6% of revenue, while the US federal government had previously been its largest single customer. [Major bank ratings] Oppenheimer: Cuts Alphabet (GOOG.US) price target to $355 from $440