Business · Markets · 6 hrs ago
Nasdaq falls 1.07% as investors weigh AI spending and earnings
US stocks closed mixed on Monday, with the Dow rising while the S&P 500 and Nasdaq fell.
The Nasdaq dropped 1.07%, as investors remained concerned that technology companies are spending heavily on artificial intelligence without clear returns.
Apple shares fell ahead of its quarterly results, with investors watching how higher memory chip costs could affect the company.
Oracle shares also declined after it disclosed plans to raise $20 billion through borrowing and a share sale, highlighting concerns about funding large infrastructure projects with debt.
Oil prices fell after Iran signalled openness to peace talks with the US, easing some worries about energy costs and inflation.
Investors were also watching US midterm elections and upcoming company results, including reports from AMD and Palantir.
The Nasdaq Composite fell 1.07% on Monday to 25,164.32 as investors weighed concerns about Big Tech’s AI spending and a fresh round of corporate earnings.
The S&P 500 declined 0.50% to 7,542.27, while the Dow Jones Industrial Average rose 0.43% to 51,992.19.
Apple shares slipped ahead of its quarterly report, and Oracle shares fell after plans to raise $20 billion through debt and a share sale were disclosed.
Falling oil prices provided some relief after Iran indicated it was open to peace talks with the United States.
Investor caution persisted ahead of Tuesday’s US midterm elections and a busy earnings calendar.
- Who
- US investors and stock market participants.
- What
- The Nasdaq fell 1.07%, while the S&P 500 also declined and the Dow rose. Investors weighed AI spending concerns, earnings and falling oil prices.
- When
- Monday, November 2, 2026.
- Where
- Wall Street, United States.
- Why
- Investors weighed concerns about returns from Big Tech’s AI investments, corporate earnings and other market factors.
This story does not have two clearly opposing sides.
The Nasdaq lost 5.3% during the month amid concerns about AI infrastructure spending.
US stocks closed mixed, with the Nasdaq and S&P 500 lower and the Dow higher.
Apple was due to announce quarterly results, while Palantir was due to report.
- Nasdaq Composite
- Fell 272.68 points, or 1.07%, to 25,164.32
- S&P 500
- Fell 37.80 points, or 0.50%, to 7,542.27
- Dow Jones Industrial Average
- Rose 221.88 points, or 0.43%, to 51,992.19
- Oracle fundraising plan
- $20 billion through debt and a share sale
- Nasdaq in October
- Lost 5.3%
What people are saying
Companies have to realize there's a limit to how much they spend and what it means in terms of enhanced shareholder value. At some point, there is no additional value add, just expense.