Nasdaq-100 closes more than 10% below record, entering a correction
What happened
The Nasdaq-100 closed more than 10% below its all-time closing high on Monday, Nov. 2, 2026, formally confirming that the tech-heavy index has entered a correction, as investors grow wary of Big Tech's soaring AI spending with little evidence of adequate returns, Reuters reported Tuesday morning. The Nasdaq composite had already fallen 1.07% Monday to extend Friday's selloff, and Tuesday premarket showed defensive de-risking ahead of the midterm elections — Dow futures down ~0.8% while the Nasdaq attempted a tentative relief bounce (+0.3%) on the back of Monday's Apple and Palantir reports. The 10-year Treasury yield stood at 4.91%, with FedWatch pricing a 72-75% chance of a December Fed rate hike and October nonfarm payrolls due Friday.
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Start your free 14-day trialWho’s affected
- QQQ / Nasdaq-100 — confirmed correction, -10%+ from all-time closing high; tech-heavy exposure under pressure
- Mag 7 AI-capex spenders (MSFT, GOOGL, META, AMZN, ORCL) — market demanding evidence of adequate returns on doubled capex
- Apple (AAPL), Palantir (PLTR) — post-earnings selloffs despite beats, -4.5% and ~-5% premarket Tuesday
- Dow/industrials — defensive rotation; Dow rose ~0.4% Monday as money rotated out of tech
Sources