Tuesday, November 3, 2026
Nasdaq Slides Another 1.1% as Tech Selloff Extends and Money Rotates Into the Dow
Key Indicators
S&P 500 (Mon close)
7,541.40
-0.5% (down)Nasdaq Composite (Mon close)
25,164.32
-1.1% (down)Dow Jones Industrial Average (Mon close)
51,983.98
+0.4% (up)Russell 2000 (Mon close)
2,805.88
-0.2% (down)Market Recap
Monday's close: tech falls again, the Dow gains
U.S. stocks were mixed on Monday, November 2, as the tech selloff extended. The S&P 500 fell 38.67 points, or 0.5%, to 7,541.40, and the Nasdaq Composite dropped 272.68 points, or 1.1%, to 25,164.32. The Dow Jones Industrial Average bucked the trend, rising 213.67 points, or 0.4%, to 51,983.98, as money rotated out of technology shares. The Russell 2000 slipped 5.97 points, or 0.2%, to 2,805.88. Stocks initially rallied: the Nasdaq 100 opened more than 1.2% higher before turning lower and breaking below Friday's low, and one report says it ended more than 10% below its October high, a technical correction. U.S. markets are open today, Tuesday, November 3.
Intel extends its slide after Friday's record drop
Intel kept falling after Friday's 28.6% plunge, closing Monday at $59.97, down $5.79, or 8.80%, after an intraday low of $59.40. Friday's move, which followed fourth-quarter revenue guidance well below consensus, was reported as the stock's worst session since the 1970s. The continued weakness in Intel and other AI-linked names kept pressure on the Nasdaq even as the Dow, with less tech weight, finished higher. Closing figures for Treasury yields, oil and the VIX on Monday could not be verified this run and are omitted.
Sources disagree on correction status; jobs report looms
Reports differ on exact levels, so the Nasdaq Composite's drawdown is the cleaner measure: after Friday's close of 25,437.00 it fell a further 1.1% to 25,164.32, roughly 8.8% below its all-time closing high of October 6 based on Friday's reported 7.8% gap. The Composite itself has not been verified in a correction. The next major catalyst is the October jobs report on Friday, November 6, which will shape expectations for Fed policy while equities are under pressure. Tuesday, November 3 is also U.S. midterm election day.
Concept of the Day
Sector Rotation
Sector rotation is the movement of investor money from one part of the market to another, typically as expectations about growth, rates or valuations change. Instead of selling stocks outright, investors sell sectors they think are overextended or exposed to bad news and buy sectors they see as cheaper or more defensive. The result is that index performance diverges: a tech-heavy index can fall while a more diversified one rises. The mechanics come from index construction. The Nasdaq Composite is dominated by technology and communication companies, so it moves with them. The Dow is a price-weighted index of 30 large companies with a smaller tech share, so it can rise when money leaves tech for industrials, energy, financials or health care. Analysts track relative performance between sectors, such as tech against the equal-weighted market, to spot rotations. Rotation is not a signal that the market is healthy or unhealthy by itself. It can be a benign rebalancing after a big run, or an early sign of broader risk reduction if the buyers of the other sectors fade. The key tests are breadth and whether the rotating money stays in the market.
Why it matters
Monday showed rotation clearly: the Nasdaq Composite fell 1.1% to 25,164.32 and the S&P 500 fell 0.5% to 7,541.40, while the Dow rose 0.4% to 51,983.98 as money rotated out of technology shares. Intel's further 8.80% drop to $59.97 kept pressure on chips and AI-linked names. For investors, a portfolio's performance depends on its sector mix, so checking how much of it sits in the area being sold matters as much as watching the headline index.
What to Watch
Fri, Nov 6
Employment Situation (October jobs report)
Payrolls and wages will shape expectations for the Fed's next move while stocks are under pressure.