Investment News · 31 October 2026 · 5 min read
In short: US markets had their worst day since June on Friday, 30 October. The Nasdaq fell 2.86%, the S&P 500 fell 1.82% and the Dow fell 1.09%. Unusually, the assets people usually run to also fell: gold dropped about 3.6% to around $3,885 an ounce (a one-year low), silver fell nearly 6% and bitcoin slipped to about $77,000. In India, 24-carat gold fell ₹3,380 to ₹1,38,880 per 10 grams on Saturday. Not everything fell, though: US government bonds rose and oil climbed.
Friday’s scoreboard (30 October, US close)
| Asset | Close | Change |
|---|---|---|
| Nasdaq Composite | 25,437.00 | -2.86% (-747.73 points) |
| S&P 500 | 7,580.07 | -1.82% (-140.32 points) |
| Dow Jones | 51,770.31 | -1.09% (-572.25 points) |
| Philadelphia Semiconductor Index | 10,688.80 | -7.20% |
| Gold | About $3,885 an ounce | -3.6%, a one-year low |
| Silver | About $49 an ounce | -5.9% to -6.4%; below $50 for the first time in 11 months |
| Bitcoin | About $77,000 | -1.2% to -1.3% |
| US 10-year Treasury yield | About 4.93% | Down about 4-6 basis points (bond prices up) |
| Brent crude | About $113-117 a barrel | Up over 2% |
| VIX (fear gauge) | 19.42 | +12.9% |
Figures differ slightly between sources because of contract months and timing. All are as reported by Yahoo Finance, Capp Notes and crypto.news.
Why did markets fall?
- Worries about AI spending. Big tech companies are spending huge sums on AI data centres. Alphabet (Google’s parent) fell 12.6% on Thursday, its worst day in over 20 years, after its cash flow turned negative because of this spending. Amazon reported a record free cash outflow. Investors are asking whether this spending will pay off.
- Intel’s weak outlook. Intel forecast fourth-quarter revenue of $15-16 billion, below the $17.1 billion analysts expected, and said the PC slowdown may last through the first half of 2027. Its shares fell about 28% during the day, dragging chip stocks down 7.2%.
- Fear of higher interest rates. The US Federal Reserve held rates at 3.75-4.00% on 28 October, but two Fed officials said rates may need to rise further. Markets now expect a hike in December.
- A big crypto hack. Crypto exchange Binance disclosed a security breach reported at about $6.3 billion, which hit bitcoin and crypto-linked stocks.
- Oil and war risk. An attack on a tanker in the Strait of Hormuz and signs of possible fresh US strikes on Iran pushed oil higher, adding to inflation worries.
Why did gold fall when stocks fell?
Gold usually rises when markets are scared. On Friday it did not. One reason analysts give is forced selling: when investors who borrowed to buy shares or crypto face losses, they get margin calls and sell whatever they can, including gold, to raise cash. Ponmudi R of Enrich Money pointed to margin calls and the unwinding of leveraged positions. Expectations of higher US interest rates also make gold, which pays no interest, less attractive.
What it means for Indian investors
- Gold buyers: 24K gold in India fell ₹3,380 to ₹1,38,880 per 10 grams and 22K fell ₹3,100 to ₹1,27,300 on 31 October (Goodreturns). Gold ETFs and gold mutual funds will reflect this when markets open on Monday.
- Indian shares: Indian markets had already closed higher on Friday (Nifty 23,053) before the US fall. Monday, 2 November, is the first session that will react to it. Nifty IT had risen 2.3% on Friday, so IT stocks are worth watching.
- US stock funds: If you hold Nasdaq or US tech funds through Indian mutual funds, expect your NAV to fall.
- Busy week ahead: The US midterm elections are on 3 November. See our guide on results timing in IST and what to watch.
Koshfin view
Our view is meant to help you think clearly. It is not a buy or sell recommendation, and we do not predict where markets go next.
- Keep it in proportion. Even after Friday, the S&P 500 ended October down about 1.2% and the Dow ended the month up about 1.5%. The Nasdaq is about 7.8% below its 6 October record. That is a sharp fall, but one bad day is not a crash on its own.
- Diversification still helped, just not where people expected. Government bonds rose while shares, gold and bitcoin fell. No single “safe” asset protects you every time, which is why a mix of equity, debt, gold and cash matters.
- Borrowed money makes falls worse. Friday’s forced selling was driven partly by leverage. Avoid investing with loans or credit, and be careful with futures and options.
- Your emergency fund comes first. Keep 6 months of expenses in a savings account or liquid fund so you never have to sell investments in a bad week. Our savings calculator can help you plan.
- SIPs are built for weeks like this. A SIP buys more units when prices fall. Stopping it in panic defeats the purpose. See our piece on continuing SIPs when markets are down.
- Do not chase dips on social media tips. Gold, silver and crypto can keep falling after a big drop. Decide your allocation calmly, not on a single day’s headlines.
What to watch next
- Monday, 2 November: Indian markets react to the US fall; gold ETF prices update.
- Tuesday, 3 November: US midterm elections; first results from about 4:30 am IST on 4 November.
- Further details on the Binance breach and any Fed comments on a December rate hike.
Sources
- Yahoo Finance: Stock market today, 30 October (live)
- Capp Notes: Closing Look, Friday 30 October 2026
- Reuters via Yahoo Finance: Stocks fall on AI cash burn worries while bonds rally
- Stock Titan: Stock market today, 30 October 2026
- crypto.news: Bitcoin nears $77,000 as stocks and gold fall
- Goodreturns: Gold rates today, 31 October
- HDFC Sky: The Prime Daily, 30 October 2026
This is a news summary for education, not investment advice. Figures are as reported on or before 31 October 2026; check official sources before making decisions.