Nasdaq-100 Falls Into Correction: 10.4% Below Its Record as Chips Slide

The Nasdaq-100 closed in a technical correction on Monday, November 2, 2026 — down 10.4% from its October 6 record — as a three-day rout in chip stocks deepened on doubts about whether massive AI spending will pay off. It is the index's third correction of 2026, and the selling spread into Asia on Tuesday morning, dragging South Korea and Taiwan sharply lower hours before Americans vote in the midterm elections.

What happened

The Nasdaq-100 fell 1.4% on Monday to close at 27,989.82, according to Dow Jones Market Data reported by MarketWatch. That close sits 10.4% below the index's record-high close of 31,224.47 on October 6 — past the 10% line traders use to define a correction. The index flirted with that line on Friday, when it fell 3.46% and briefly touched correction territory intraday. Monday finished the move: the index has lost 6.1% in three sessions since October 28, based on index data compiled by Wall Street Observer.

The broader market held up better. The S&P 500 fell only 0.5% to 7,541.40 — 3.5% below its own October 6 record — while the Dow Jones Industrial Average rose 0.4%. The Nasdaq Composite fell 1.1%, leaving it 8.8% below its October 6 peak. Most S&P 500 sectors actually finished higher on Monday; technology once again pulled the headline indexes lower.

Key facts

• Correction confirmed: Nasdaq-100 at 27,989.82, down 10.4% from the October 6 record close of 31,224.47 — its third correction of 2026, after bottoms on March 27 (-12%) and July 29 (-11%).
• Chips led the fall: a gauge of U.S. chipmakers has fallen 12% in three days; the VanEck Semiconductor ETF (SMH) closed at $508.31, down 10.5% since October 28.
• Biggest chip losers: AMD fell 7.5% on Monday and is down 19.3% since October 28; Micron fell 5.8% on the day and 15.2% over three sessions; Nvidia is down 6.2% over the same stretch.
• Intel's slide deepened: Intel dropped another 8.8% on Monday and has now plunged 57.4% since its record close of $140.94 on June 22.
• Still up for the year: despite the correction, the Nasdaq-100 remains up 10.9% in 2026 through Monday, according to FactSet data cited by MarketWatch.

Why it's blowing up

The argument driving the selling is about AI returns. "The main root of it is people are questioning some of the assumptions they made about AI," Steve Sosnick, chief strategist at Interactive Brokers, told MarketWatch after Monday's close. For years the working assumption was that all money spent on AI was well spent; now investors are asking whether the borrowing behind the data-center buildout will be paid back adequately. Sosnick added that with investors already fully loaded on tech, there is less spare cash left to buy dips — and that stocks "priced for perfection" have to deliver perfection.

Two Monday headlines fed that worry. Oracle fell about 8.8% after detailing plans to raise $20 billion to fund its AI buildout — a reminder of how much financing the boom still needs. Marvell fell about 13% and Lumentum about 19% after Marvell's $115 billion all-stock acquisition of Lumentum, greeted as another expensive AI bet. Ryan Detrick of Carson Group summed up the mood: "The tech wreck from October continued to start November."

The spillover was immediate. As CoinDesk reported on Tuesday morning in Asia, Bitcoin fell about 2% to just under $77,000, erasing Monday's rebound. In Asia, Reuters reported the MSCI Asia-Pacific index ex-Japan down 1.4% at its lowest since October 23, South Korean shares down as much as 4.1%, and Taiwanese shares down 3.3% — leaving Taiwan's benchmark down 13.1% from its record, near a correction of its own.

What's next

The next test arrives within hours. AMD reports earnings after Tuesday's close, with Arista Networks and Super Micro Computer the same day and Qualcomm and Arm on Wednesday. Voters decide the U.S. midterms on Tuesday, and the week builds to Friday's payrolls report, where economists cited by Bloomberg expect about 65,000 new jobs with unemployment steady at 4.2%. Late Monday brought a small stabilisation sign: by 10:00 p.m. ET the QQQ ETF was up 0.3% and AMD up 1.7% after hours. Whether that holds will decide if this stays a correction — a 20% fall would make it a bear market. This report describes market moves only; it is not investment advice.

FAQ

What is a technical correction?

A correction is a fall of 10% or more from a recent peak. A fall of 20% or more is generally called a bear market. The Nasdaq-100 crossed the 10% line at Monday's close.

How far has the Nasdaq-100 fallen?

The index closed at 27,989.82 on November 2, down 10.4% from its record close of 31,224.47 on October 6, and down 6.1% in the last three sessions alone.

Why are chip stocks falling so hard?

Investors are questioning whether huge AI data-center spending — and the borrowing funding it — will earn an adequate return. A U.S. chipmaker gauge is down 12% in three days, with AMD down 19.3% since October 28.

Is this the Nasdaq-100's first correction of 2026?

No. It is the third: the index previously bottomed in corrections on March 27, down 12% from its October 2025 high, and on July 29, down 11% from its June 2 high. It is still up 10.9% for the year.