Business · Markets · 4 hrs ago
Nasdaq 100 Falls Into Its Third Correction of the Year
The Nasdaq 100 fell into a correction on Monday, meaning it was more than 10% below its October 6 peak.
The index dropped 1.4% to 27,989.82, though it remained up 11% for 2026.
This was the index’s third correction this year as investors reassessed the outlook for big technology companies and artificial intelligence.
Many are concerned that AI investment costs may not deliver clear returns soon.
Recent results added to the worries: Alphabet reported weaker-than-expected advertising and search revenue, while Meta and Amazon shares fell after their results.
The selloff also followed sharp drops in shares of Intel and ServiceNow after disappointing forecasts, and the sources give no next step or timeline for a recovery.
The Nasdaq-100 fell into a correction on Monday, its third this year, amid growing concerns about Big Tech and artificial intelligence spending.
The index fell 1.4% to 27,989.82, more than 10% below its Oct. 6 peak.
Despite the decline, the index remained up 11% for 2026.
Investors are questioning the cost of AI investment and when it will produce clear returns.
Recent results from Alphabet, Meta and Amazon added to pressure on technology stocks.
- Who
- The Nasdaq-100 and investors in Big Tech and AI-related stocks.
- What
- The index entered a correction, its third this year, after falling more than 10% from its peak.
- When
- Monday, Nov. 2, 2026.
- Where
- Not stated
- Why
- Investors are concerned about the cost of AI investment and when it will pay off. Recent company results also weighed on sentiment.
This story does not have two clearly opposing sides.
The Nasdaq-100 reached a peak from which it later fell more than 10%.
Alphabet shares had their worst day ever after the company reported weaker-than-expected advertising and search revenue.
The Nasdaq-100 fell 1.4% to 27,989.82 and entered a correction.
- Index decline
- 1.4%
- Index level
- 27,989.82
- Correction threshold
- More than 10% below the Oct. 6 peak
- Corrections in 2026
- Third
- 2026 performance
- Up 11% despite the correction
2 sources
What people are saying
People are getting antsy about how much these companies are spending, spending, spending.
I don’t think the AI trade is dead, but it did get ahead of itself.