Nasdaq 100 Loses More Than $2.5 Trillion in October, Nears Correction
Key Facts
The Nasdaq 100 lost more than $2.5 trillion in market value during October and came close to correction territory, according to a Reuters report on Nov. 2. The report attributed pressure on stocks to investor concerns about major technology companies’ spending on artificial intelligence and their wait for stronger evidence of returns on those investments. The index’s close fell from 28,384.85 points on Oct. 30 to 28,111.02 points on Nov. 2, according to EL7 data. The loss figure measures the decline in market value in dollars, while nearing correction territory refers to the index’s movement relative to its previous peak. In Monday’s session, the Nasdaq Composite fell 1.1%, reflecting continued weakness in technology stocks.
Amazon’s capital investments led the discussion after the company’s spending in the third quarter came in about $20 billion above expectations, according to an analysis by the Nasdaq Economic Institute. The report also included a forecast for Amazon’s fourth-quarter revenue below analysts’ estimates. The figures came as investors demand clearer signs that heavy spending on AI-related infrastructure will generate returns commensurate with its scale. The Reuters report said concerns encompassed major technology companies’ spending, as the market awaits tangible results from the investments. At the same time, estimates for earnings-per-share growth for the Nasdaq 100 and semiconductor indexes remained strong for the third quarter of 2026, according to the Nasdaq report. But elevated expectations leave companies with little room for error if results or guidance fall short of what is expected.
Weak market breadth preceded the late-month selloff. The share of Nasdaq 100 stocks trading above their 200-day moving average fell to 56% at the start of October, from 77% on Aug. 13, and below the long-term average of 62%, according to the Nasdaq report. As participation among the index’s constituents declined, the Nasdaq 100 set a new record on Oct. 6, the same report said. This places the record performance in the context of a divergence within the market between the index level and the breadth of gains among its stocks. The decline in the share below its long-term average also indicates that weakness among a number of constituents was in place before the late-October drop.
The Oct. 30 losses extended to major U.S. indexes. The S&P 500 fell 1.8%, its worst daily performance since June, the Nasdaq Composite dropped 2.9%, and the Dow Jones lost 572 points, or 1.1%, according to the Associated Press. Technology stocks were among the biggest sources of pressure on the Nasdaq Composite. Intel shares fell 28.6% in the session, their biggest drop since 1974, after the company forecast earnings for the final three months of the year below analysts’ expectations, the agency reported. Weekly performance showed divergence across market sectors: the Nasdaq Composite lost 2% in the week ended Oct. 30, while the small-cap Russell 2000 rose 1.3%, according to the Associated Press.
In the Nov. 2 session, the S&P 500 erased morning gains of 1.1% to end the day down 0.5%, while the Dow Jones rose 0.4% and the Nasdaq Composite fell 1.1%, according to the Associated Press. The Nasdaq 100 closed at 28,111.02 points, below its previous close of 28,384.85 points, according to EL7 data. Index moves diverged during the day, but the Nasdaq Composite’s lower close kept pressure on technology stocks in place. This coincided with the approach of the U.S. midterm elections on Nov. 3, a date the Nasdaq report cited among factors that could add to economic and political noise in the market. Investors continue to monitor the results of companies tied to AI spending as they weigh strong earnings expectations against the scale of capital spending.