The Morning Briefing · Saturday, 31 October 2026 · Published 07:15 CET · 4-minute read
Good morning. October ended with Wall Street’s worst day since June, as a historic collapse in Intel shares revived fears about the AI trade, while new attacks on tankers in the Strait of Hormuz pushed oil higher again. Here is what you need to know for the weekend.
☕ Today in 30 seconds
- Intel plunged about 29%. Its worst day since 1974 dragged the Nasdaq down 2.9% and capped a month in which the index lost more than 5%.
- Mines hit tankers in Hormuz. Brent rose about 2.4% and stays well above $110, keeping fuel and heating bills under pressure.
- Fed officials talk up more hikes. Markets see a December rate rise as likely.
- Italy’s inflation jumps to 5.4%. Spain holds at 4.9%; the euro-area figure is due next week.
📈 Markets
| Index/Asset | Last close | Change |
|---|---|---|
| S&P 500 | 7,580.07 | −1.82% |
| Nasdaq Composite | 25,437.00 | −2.86% |
| Dow Jones | 51,770.31 | −1.09% |
| Euro Stoxx 50 | ↓ lower | ↓ lower |
| IBEX 35 | ↓ lower | −1.09% |
| Brent crude | above $110 a barrel | +2.37% |
| Gold | ≈ $3,900 an ounce | ↓ more than 3% |
| EUR/USD | ≈ 1.12 | little changed |
| US 10-year yield | ≈ 4.93% | ↓ lower |
Technology stocks led the sell-off while energy shares gained, with Exxon and Chevron touching record highs. In Madrid, the IBEX 35 lost almost 4% in October, its worst month since March, as investors sold banks such as Santander and BBVA (Yahoo Finance, CappNotes, Press Digital).
🌍 Economy
Fed officials lean towards more tightening. Two days after the Fed held rates in a split vote, St. Louis Fed president Alberto Musalem said further firming is needed soon and Richmond’s Tom Barkin suggested rates may have to rise further. Futures markets now treat a December hike as the most likely outcome (Yahoo Finance, CappNotes).
US labour costs keep climbing. The Employment Cost Index rose 0.8% in the third quarter, in line with forecasts, and 3.4% from a year earlier. Steady wage growth is one reason the Fed is wary of declaring victory on inflation (StockTitan, CappNotes).
Europe’s inflation picture splits. Flash data showed Italy’s inflation jumping to 5.4% from 4.2% and France’s rising to 3.4%, its highest since January 2024. Spain held at 4.9%, while Germany eased to 2.8% thanks to a temporary fuel tax cut. Eurostat publishes the euro-area estimate next week (Euronews, Press Digital).
⚡ Energy & bills
Tanker attacks push oil higher. A tanker in the Strait of Hormuz was hit by limpet mines, according to security sources, and Iran’s Revolutionary Guard reported three tankers on fire, even as diplomatic talks continue. Brent gained about 2.4% on Friday and remains well above $110 a barrel (gCaptain, Euronews).
Energy is driving household inflation. In Italy, energy prices were 31.4% higher than a year ago in October, and regulated energy tariffs rose 59.5%. In France, energy inflation reached 24.1%. Germany shows how tax relief can soften the blow: its fuel tax cut, in force until year-end, helped pull inflation down (Euronews).
🏢 Companies
Intel suffers a historic collapse. The chipmaker guided fourth-quarter revenue to $15–16 billion, well below Wall Street’s forecast, and warned the PC slowdown would last at least into the first half of next year. Its shares fell about 29%, their worst day since 1974, and pulled other chipmakers sharply lower (Yahoo Finance, TheStreet).
Reddit sinks on a weak outlook. Shares fell about 29% after a disappointing fourth-quarter forecast and worries that Google’s AI-powered search is reducing the traffic it sends to the site (TheStreet, CappNotes).
🔢 One number to know
49.3
China’s official manufacturing PMI for October, released this morning: down from 50.1 and below the 50 line that separates expansion from contraction (Xinhua, Newsquawk).
🗓 What to watch today
| Time (CET) | Event | Why it matters |
|---|---|---|
| Today | Markets closed for the weekend | Time to digest October’s sell-off in tech |
| Sun 1 Nov, 07:00 | US clocks go back one hour | From Monday the usual six-hour gap with New York returns (8:30 ET = 14:30 CET) |
| Mon 2 Nov, 16:00 | US ISM manufacturing (October) | First big read on US factories after the Fed meeting |
| Next week | Euro-area inflation (October, flash) | Will Italy and France push the euro-area rate higher? |
| Fri 6 Nov, 14:30 | US jobs report (October) | Could decide whether the Fed hikes in December |
Full week in our economic calendar.
📚 Read more
- Chicago’s Peoples Gas rate hike nears decision: what it means
- The Fed held rates. Is your money really growing?
- Headline vs core inflation: why gas prices skew the number
- Tool: check what inflation does to your savings with our inflation calculator.
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Market data is for information only and is not investment advice.
Written by The Daily Economy editorial team with AI assistance and checked against the linked sources. Read our editorial policy.