Tech selloff wipes $2 trillion from Nasdaq 100 in October
Archived — this story has rotated out of today’s deck. It is kept here in full.
The gist
Big Tech earnings doubts wiped over $2 trillion from the Nasdaq 100 in October.
The pullback tests whether the AI-driven bull market can hold its record run.
Background
The Nasdaq 100 is a US stock index heavy in technology companies, and it had been lifted to record highs by a multitrillion-dollar splurge on artificial intelligence, aided by Washington's light-touch approach to business. In October, Big Tech earnings intensified investor scrutiny of whether the cash being invested in AI can generate returns quickly enough, and the cost of insuring some tech companies' bonds surged while some proposed data-center projects struggled to raise money. The retreat deepened in early November as US stock futures fell and Asian markets dropped, with investors also weighing the U.S. midterm elections.
How it unfolded
- Oct 22, 2026The benchmark 10-year Treasury yield fell almost 20 basis points, its biggest daily fall since early 2023, as investors flocked to bonds.
- Oct 29, 2026Wall Street sold off in technology shares: the Nasdaq 100 sank 3.5% and briefly crossed the threshold of a technical correction, while the S&P 500 fell 1.8%.
- Oct 30, 2026The S&P 500 fell 1.8% to 7,580.07 and the Nasdaq composite fell 2.9% to 25,437.00; Intel sank almost 29%, its worst day since 1974, after a profit forecast fell below analysts' expectations.
- Nov 2, 2026The S&P 500 fell 0.5% after erasing a 1.1% early gain; the Dow added 0.4% and the Nasdaq composite fell 1.1%.
- Nov 4, 2026S&P 500 futures fell 1.1% in after-hours trading; Japan's Nikkei 225 plunged 3.6% and Taiwan's index sank 3% to three-month lows, while South Korea's KOSPI dropped 2.9%.
Who’s saying what
- Analysts
- Alicia Garcia-Herrero of Natixis attributed the Asian sell-off to AI, saying "The sell-off in Asia today is because of A.I."
- Analysts
- Garcia-Herrero said she did not expect Democrats to "kill the goose that lays the golden eggs" on data-center investment despite fears of slower spending under greater oversight.
- Caution
- Fidelity warned that stock markets are volatile and can fluctuate significantly in response to company, industry, political, regulatory, market or economic developments, with investing carrying risk of loss of principal.
Still unverified
Early results appeared to indicate a landslide Democratic victory in the House and Senate, and betting markets had favored a Democratic House win while the Senate remained a closer contest; the Wall Street selloff also fueled concern that the AI frenzy powering the equity bull market might be overblown.