Declines in tech and crypto sectors close out a turbulent October

October concluded with significant downturns in both tech and crypto markets, marked by rising concerns over government shutdowns and substantial AI spending within tech companies. The Nasdaq, S&P 500, and Bitcoin all faced losses, with Meta and Microsoft stocks contributing heavily to this decline; Meta, in particular, saw an 11.3% drop in one day, its most substantial decrease in three years. Investors are wary of continued hawkish policies from the Federal Reserve, leading to a 64.8% probability of a rate cut being sidelined in December. Meanwhile, gold experienced a resurgence, gaining 1.96% as investors sought safe havens amid market uncertainties. Crypto indices also struggled, with major sectors closing in the red, as Layer 2 solutions and Launchpad sectors faced considerable losses of 8.9% and 8.7%, respectively. Amid this volatile environment, investors are advised to remain patient and focused, as opportunities in crypto are still expected despite the challenging landscape.

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