Economy news · 31 October 2026
Wall Street Suffers Worst Day Since June as AI Spending Fears Trigger Tech Rout
A sharp sell-off sent the Nasdaq down 2.9% and the S&P 500 down 1.8%, closing out a third straight losing week, as investors questioned the returns on Big Tech's massive AI infrastructure spending after Intel posted its worst single-day loss since 1974.
Volkswagen Posts €5.8 Billion Quarterly Loss Amid China Slump and Porsche Write-Down
Volkswagen reported a €5.8 billion ($6.5 billion) after-tax loss for the July–September quarter, hurt by weak demand in China, U.S. tariffs, lower electric vehicle profits and a €6.4 billion reduction in the value of its Porsche stake.
China's Factory Activity Contracts Again as Export Orders Soften
China's official manufacturing purchasing managers' index fell to 49.3 in October, back into contraction territory, as new export orders dropped amid global trade tensions and weakening domestic demand.
Bank of Japan Holds Rate at 1.25%, Flags Upside Inflation Risks and Continued Tightening Path
The Bank of Japan kept its key interest rate unchanged at 1.25% at its October policy meeting, with all board members agreeing that underlying inflation has reached levels broadly consistent with the 2% target, though Governor Ueda stopped short of declaring that target fully achieved.