Nasdaq 100 Enters Correction as AI Spending Doubts Hit Tech Stocks

Direct answer: The Nasdaq 100 entered a technical correction on Monday, November 2, 2026, after closing more than 10 percent below its recent record high. In simple terms, a correction means a market index has fallen at least 10 percent from its peak, but it is not the same as a bear market, which is usually a fall of 20 percent or more.

What happened

The Nasdaq 100 closed at 27,989.82 on Monday, down 1.39 percent on the day. MarketWatch reported, using Dow Jones Market Data, that this left the index 10.4 percent below its record close of 31,224.47 on October 6, 2026. This is the third time the Nasdaq 100 has entered a correction in 2026, after corrections in March and in July. The wider market was mixed on Monday. The Nasdaq Composite fell 1.07 percent to 25,164.32, and the S and P 500 fell 0.51 percent to 7,541.40, while the Dow Jones Industrial Average rose 0.41 percent to 51,983.98. Chip stocks led the fall. The Philadelphia Semiconductor Index dropped 3.37 percent on Monday, with Intel down 8.8 percent, Marvell down about 13 percent, and AMD down 7.5 percent. The cautious mood carried into Tuesday morning in Asia. CoinDesk reported that Bitcoin fell about 2 percent to just under 77,000 dollars in Tuesday morning trading in Asia, erasing its brief rebound on Monday. That move was in line with a wider fall in riskier assets as chip stocks kept falling and investors waited for the United States midterm election results.

Why it matters for beginners

A correction is a useful warning sign, not a verdict on the whole economy. It tells beginners that investors have become less willing to pay high prices for fast growing technology companies, especially when they doubt whether huge spending on artificial intelligence will pay off soon enough. The Nasdaq 100 holds many of the largest nonfinancial companies listed in the United States, so a sharp fall there can affect index funds and retirement accounts that track technology stocks, even for people who do not buy single stocks. At the same time, the index was still up 10.9 percent for the year through Monday, according to FactSet data cited by MarketWatch, which shows that a correction can happen inside a year that is still positive overall.

Readers who followed the earlier mixed session on November 2 can see the wider picture in our post on US stocks closing mixed as tech fell and the Dow rose.

What to watch next

AMD reports its third quarter results after the market closes on Tuesday, November 3, and Qualcomm and Arm report on Wednesday, November 4. Those results will test whether demand for chips and artificial intelligence equipment is still strong, or whether the recent falls were an early warning. Investors will also watch the United States midterm election results, the October jobs report on Friday, November 6, and any new signs about whether the Federal Reserve will raise interest rates in December. A further fall of about 10 percent from Monday’s close would take the Nasdaq 100 to the 20 percent bear market level, but that is a marker to watch, not a prediction.

FAQ

What is a technical correction?

A technical correction is a fall of at least 10 percent from a recent peak. It is a label traders use to describe the size of a fall, not an official economic event.

Is a correction the same as a crash?

No. A crash usually means a very sharp fall in a very short time. A correction can build over days or weeks, and many corrections end without turning into a bear market.

Does a correction mean I should sell?

This post gives no buy or sell advice. For beginners, the main lesson is to understand what you own, why you own it, and how much short term swings you can accept, rather than reacting to one day of headlines.