Nasdaq’s 2% Drop Precedes Pivotal Week for Apple, AMD Earnings and US Jobs Data
Key Facts
US markets are heading into a week that will test investor confidence in returns on AI spending, after major indexes fell in the week ended Friday, October 30. The Nasdaq Composite lost 2.00% for the week, compared with 0.85% for the Dow Jones and 0.57% for the S&P 500, according to a report by FXEmpire published on November 1, 2026. The report said congressional elections and results from Apple, AMD, Palantir and Qualcomm, along with comments from Federal Reserve officials and Friday’s jobs report, are the week’s main drivers. These events come after AI stocks lost their leadership position in the market, as attention increasingly turns to companies’ ability to convert investment into revenue, earnings and cash flow. Apple is scheduled to report results on Monday, November 2, while AMD confirmed it will report third-quarter fiscal results on November 3 after the market closes.
Trading pressure was more pronounced in Friday’s session, when the S&P 500 fell 1.8%, the Nasdaq Composite 2.9% and the Dow Jones 1.1%, according to Associated Press data. The Philadelphia Semiconductor Index fell more than 7%, its biggest one-day drop since late June, after touching its lowest level since May. The S&P 500 technology index also lost 4.2%, its weakest session since early June, according to Reuters. Intel shares fell 28.6% that day, while Amazon shares declined 1.4%, after results from both companies showed cash burn as they invested heavily in AI development. Intel said weak demand for PCs could persist through the following year, adding to pressure on the chip sector.
FXEmpire’s coverage attributed the weak performance of AI stocks to mixed results from Alphabet and Amazon, and Intel’s roughly 29% drop on Friday. Investors are focused on whether AI-related spending will generate revenue, earnings and cash flow sufficient to justify the scale of investment. Reuters said Amazon and Intel’s results showed cash burn as they invested in AI development, while Intel also pointed to slowing PC demand. With more than half of S&P 500 companies having reported third-quarter results, earnings were on track for annual growth of 31.6%, according to the FXEmpire report. Results from Apple, AMD, Palantir and Qualcomm are set to bring AI-related spending, revenue and cash flow under closer scrutiny during the week.
Apple enters earnings season after reporting revenue of $109.4 billion for its third fiscal quarter, published on July 30, up 16% year over year. Diluted earnings per share were $2.02, up 29% year over year, according to the company’s statement. CEO Tim Cook said Apple delivered its “strongest June quarter ever,” with double-digit growth in iPhone, Mac and services. The company’s shares closed at $344.63 on October 30, while AMD shares closed at $504.80, according to EL7 data. The companies’ results come as investors watch how AI investment is reflected in revenue and cash flow, the test identified by the FXEmpire report.
The companies’ results coincide with US midterm elections scheduled for November 2026, which will determine which party holds the majority in both chambers of Congress for the next two years. The elections include all House seats and one-third of Senate seats, according to USA.gov. On November 3, the September Job Openings and Labor Turnover Survey (JOLTS) data are due, according to the US Bureau of Labor Statistics’ schedule. The October jobs report is scheduled for Friday, November 6, at 8:30 a.m. Eastern Time. This schedule separates the September JOLTS data from the October jobs report, which comes at the end of a busy week of corporate earnings and elections.