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Nasdaq 100 Falls 10.4% Into Correction on AI Spending Fears
Why did the Nasdaq 100 fall 10.4%?
Nasdaq 100 (NDX) fell 1.4% to 27,989.82 on Monday, a technical correction 10.4% below its Oct. 6 peak, after Big Tech earnings and Oracle's $20B funding plan deepened doubts about AI spending payoffs.
Key numbers
| Nasdaq 100 close, Nov 2 | 27,989.82-1.4% on the day (per [1]) |
|---|---|
| Below Oct 6 peak | 10.4%Third correction of 2026 |
| 2026 year to date | +11%Gains still intact |
| Alphabet, Oct 29 | -13%Worst day ever |
| Alphabet Q3 free cash flow | -$9.07BAnalysts expected +$2.7B |
| Oracle, Nov 2 | -8.8%$20B raise; other reports say about 8% |
What happened
Nasdaq 100 (NDX) fell 1.4% to 27,989.82 on Monday, a technical correction 10.4% below its Oct. 6 peak, after Big Tech earnings and Oracle's $20B funding plan deepened doubts about AI spending payoffs. A correction means a drop of 10% or more from a recent high; this is the index's third this year. Alphabet, Google's parent, fell 13% on Oct. 29, its worst day ever, after burning through $9.07 billion more cash than it took in. On Monday, Oracle fell 8.8% after filing to sell $10 billion of stock and $10 billion of bonds for AI data centers.
Why it matters
The Nasdaq 100 tracks 100 of the biggest companies on the Nasdaq exchange, led by large tech firms, so its slide affects many popular stock funds. Investors are now asking whether the huge sums spent on AI will earn enough money back. Until recently, many assumed they would, so doubt about repayment and borrowing is a change in mood.
Who this affects
- MarketbearishMedium impact
- Tech-heavy funds fell, while most S&P 500 stocks rose.
- CompanybearishHigh impact
- Alphabet and Oracle shareholders took sharp one-day losses.
- CompetitorsmixedLow impact
- Non-tech stocks held up; the Dow gained 0.4%.
- IndustrybearishMedium impact
- AI builders face tougher questions about debt and returns.
Nasdaq 100 vs S&P 500, Dow Jones, Russell 2000
| Nasdaq 100NDX | 27,989.82 | -1.4% | +11% |
|---|---|---|---|
| S&P 500SPX | 7,541.40 | -0.51% | — |
| Dow JonesDJIA | 51,983.98 | +0.41% | — |
| Russell 2000RUT | 2,805.88 | -0.21% | — |
As of 2026-11-02
How we got here
Nasdaq 100 sets the peak from which the decline is measured.
Alphabet falls 13%, its worst day ever, after third-quarter results.
Oracle files to sell $10B of stock and $10B of bonds; shares fall 8.8%.
Nasdaq 100 closes at 27,989.82, 10.4% below peak, entering a correction.
What to watch
- US midterm election results; Democratic win expectations raise Big Tech regulation worries.2026-11-03
- How Oracle's $20B stock and bond sale is received amid AI debt concerns.Nov 2026
- Alphabet said 2027 spending on AI will increase significantly, keeping payoff questions alive.2027
Educational content only. Not investment advice.
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