Nasdaq-100 closes in correction as AI worries mount

The Nasdaq-100 closed 1.39 percent lower at 27,989.82 on Monday, leaving it 10 percent below its most recent peak and in its third technical correction of the year, as technology stocks fell for a third straight day.

Why it matters: The slide is now a rotation out of the market's leaders rather than a one-day drop, driven less by missed forecasts than by concern that colossal AI spending is eating into free cash flow, and it sets the tape heading into Tuesday's midterm elections.

Data as of MarketWatch report of November 2, 2026, opened in this run; its full text sits behind a paywall, so the correction call and the Interactive Brokers comment come from its visible opening, and the closing index figures come from the market data on its page, corroborated by FXStreet, read in full, which puts the fall at 10 percent from the most recent peak and calls it the index's third technical correction this year. Developing item.

The Nasdaq-100 fell 1.39 percent on Monday to close at 27,989.82, a close 10 percent below its most recent peak that puts the index in correction territory for the third time this year, after technology stocks fell for a third straight day. The S&P 500 eased 0.51 percent to 7,541.40, while the Dow Jones Industrial Average rose 0.41 percent to 51,983.98, the only major index to finish higher.

MarketWatch, which called the October slide a tech wreck that continued on Monday, quoted Steve Sosnick, chief strategist at Interactive Brokers, saying after the closing bell that the main root of it is people questioning some of the assumptions they made about AI. FXStreet, citing Morgan Stanley, said the pullback is driven by the midterm elections, concerns over AI spending and a lack of liquidity, and that investors worry less about technology companies meeting forecasts than about spending eating into free cash flow.

Nasdaq-100 closes in correction as AI worries mount

Sources