EL7.AI
StocksMedium•31 October 2026•
1 min read

Nasdaq Loses $1.2 Trillion in October as It Enters Correction Territory and Tech Stocks Fall

Key Facts

1The Nasdaq lost $1.2 trillion during October after briefly falling 10% from its previous peak.
2Alphabet lost more than $500 billion in market value after reporting third-quarter results.
3Alphabet's third-quarter revenue rose 25% to $127.6 billion.
4Google Cloud revenue rose 103% to $30.7 billion in the third quarter.
5Microsoft reported revenue of $92.3 billion and net income of $36.6 billion in the first quarter of its 2027 fiscal year.

The Nasdaq Composite briefly fell 10% from its previous peak and lost $1.2 trillion in value during October, entering correction territory after a wave of earnings revived concerns about returns on AI investments, according to Axios. On Oct. 30, the Nasdaq fell 2.9%, while the S&P 500 dropped 1.8% in its worst daily performance since June and closed lower for a third straight week, according to the Associated Press. EL7 data showed the Nasdaq closed at 25,437 points on Oct. 30, compared with 26,549.85 points at the close on Oct. 28. The pressure on the index coincided with declines in major technology stocks after they reported results, as investors looked for evidence that massive AI spending was translating into profitable growth. Earnings have paired rapid growth in cloud businesses with questions about capital spending and cash flow. Portfolio manager Joe Tigai said AI trading was shifting from a phase of

hopes and dreams

to one of

show me the results

.

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