Key takeaways
- Nasdaq 100 falls 10.4% from its October record
- AI spending concerns erase trillions in technology valuations
- Intel and semiconductor losses deepen Wall Street's correction
The Nasdaq 100 officially entered correction territory on November 2, falling 10.4% from its October record as investors continued selling artificial intelligence stocks amid growing concerns about enormous technology spending.
According to Nasdaq's index data, the technology-heavy benchmark closed Monday at 27,989.82, down 1.39% for the session. That compares with its October 6 record close of 31,224.47, marking the index's third correction of 2026.
The latest decline extends an AI stock selloff that put more than $2 trillion in technology market value at risk during October, as investors questioned whether unprecedented spending on data centers and chips would produce sufficient profits.
Why Is the Nasdaq 100 Falling?
The correction accelerated following disappointing earnings reactions from several of America's largest technology companies, including Alphabet, Amazon and Meta.
Despite substantial AI investment, investors have become increasingly concerned about debt financing, declining free cash flow and the time required to turn infrastructure investments into sustainable earnings.
The pressure became particularly visible when Intel shares collapsed nearly 29% on October 30 despite reporting 78% growth in its Data Center and AI division. The chipmaker lost another 8.8% on Monday as investors reassessed its manufacturing costs and outlook.
Other semiconductor companies also struggled. Marvell declined approximately 12.7%, AMD lost 7.5%, and Micron fell nearly 5.9% during Monday's session.
The weakness is increasingly affecting companies financing the AI expansion. Oracle's plans to raise $20 billion through stock and bond offerings reinforced concerns about how much additional capital the industry needs.
As earlier technology fund outflows demonstrated, investors have increasingly shifted money away from expensive AI-linked companies rather than abandoning equities altogether.
AI Stocks Crash While the Broader Market Holds Up
The Nasdaq correction has exposed an unusual divergence across Wall Street.
On Monday, the Dow Jones Industrial Average gained approximately 0.4%, even as the Nasdaq Composite lost 1.1% and the S&P 500 declined 0.5%.
That follows an October in which 72% of S&P 500 companies gained value despite weakness in capitalization-weighted benchmarks.
The divergence suggests the market is increasingly questioning AI valuations rather than pricing in a uniform deterioration across the American economy.
Even Nvidia's strong revenue growth has not eliminated concerns about whether its largest customers can maintain their infrastructure budgets indefinitely.
What Happens Next for the Nasdaq 100?
The immediate question is whether the correction represents a temporary reset in AI valuations or the beginning of a deeper technology-market downturn.
Investors are watching the next round of corporate earnings, particularly AMD's November 3 results, alongside borrowing costs and announcements about future data-center spending.
The recent Apple and Palantir earnings test also highlights how closely Wall Street is scrutinizing corporate margins and AI profitability.
