Nasdaq Falls 1.1% as S&P 500 Erases Gains and Dow Rises
Key Facts
U.S. stocks ended Monday, November 2, mixed, with the Nasdaq down 1.1% and the S&P 500 losing about 0.5%, while the Dow Jones Industrial Average rose 213 points, or 0.4%. The S&P 500 had risen as much as 1.1% early in the session before erasing its gains and closing lower, according to the Associated Press. The mixed performance came as technology and artificial intelligence stocks remained volatile after a sell-off the previous week. A drop in oil did not prevent the Nasdaq from falling; the agency reported that crude declined amid hopes tied to U.S.-Iran talks. Meanwhile, the U.S. manufacturing report added signs of economic strength, alongside continued price pressures.
Brent crude fell 7.6% to $104.77 a barrel on November 2, according to the Associated Press. The agency linked the decline in crude to hopes for talks between the United States and Iran, while the timing of a return to normal for regional oil supplies remained uncertain because of the war with Iran. The move in oil provided a parallel backdrop to the stock session but did not end pressure on technology and artificial intelligence companies. The agency said investors were still grappling with volatility in the sector after its decline the previous week. It also pointed to growing concerns that the productivity and profits generated by major companies' investments in AI data centers may not justify the scale of spending.
These concerns relate to the amount of money major technology companies are pouring into AI infrastructure, particularly data centers, the Associated Press said. The agency reported that investors are asking whether these investments will generate enough productivity and profits to justify their cost. This came as technology and artificial intelligence stocks continued to fluctuate after the previous week's sell-off. In the broader market, the Dow closed higher in the same session, while the Nasdaq and S&P 500 ended trading lower. The divergence among the indexes reflects differing sector performance, while concerns about returns on AI spending remained in play for technology stocks.
On economic activity, Reuters reported that the U.S. economy grew at an annual rate of 3.4% in the third quarter of 2026, compared with a 2.2% rate in the second quarter, which ran from April to June. The agency linked the improvement in manufacturing to strong consumer spending and corporate spending on AI. This places factory data within a picture of faster economic growth in the third quarter than in the previous period. But robust activity did not ease price concerns, as the input prices index remained elevated despite declining in October. Analysts expected inflation to stay above the Federal Reserve's 2% target through 2027, Reuters reported.
The prices paid for inputs index fell to 75.2 points in October from 77.9 points in September, according to Reuters. Despite the decline, the agency described the reading as still elevated, keeping production costs central to markets' assessment of the manufacturing report. It said analysts expected inflation to remain above the Federal Reserve's 2% target through 2027. Thus, signs of improving economic activity were met with continued price pressures, an issue that remains relevant to the outlook for inflation. Attention turns the next day to the job openings report, due for September on November 3 at 10:00 a.m. Eastern time, according to the U.S. Bureau of Labor Statistics schedule.
Palantir had announced that results for the third quarter, ended September 30, 2026, would be released after U.S. markets closed on Monday, November 2. The company set an online webcast to discuss the results for 5:00 p.m. Eastern time, according to an investor relations statement. Apple shares closed at $338.32 in the same session, according to EL7 data. These events came on a day when the Nasdaq fell and the Dow rose, while the S&P 500 erased its early gains. The September JOLTS report is due the next day, November 3, 2026, at 10:00 a.m. Eastern time.