From CNBC · Sean Conlon,Liz Napolitano,Hugh Leask,Justina Lee · · 2m
Nasdaq drops 1% as tech stocks fall
Tech stocks tumble as Nasdaq falls 1% amid AI concerns.
In brief
Tech stocks tumble as Nasdaq falls 1% amid AI concerns. Nasdaq Composite dropped 1.07% to 25,164.32 as investors shifted from tech to other sectors after AI spending worries. Originally reported by CNBC.
Market moves
The Nasdaq Composite and S&P 500 fell on Monday, giving up earlier gains as investors moved out of tech stocks.
Indices drop
The tech-heavy Nasdaq dipped 1.07% to end at 25,164.32, while the S&P 500 shed 0.51% to close at 7,541.40.
Dow outperforms
The Dow Jones Industrial Average rose 213.67 points, or 0.41%, to 51,983.98, outperforming tech indices.
Tech sell-off
Nvidia and Meta Platforms each dropped 1%, Apple closed nearly 2% lower, and Marvell Technology shares fell 13%.
Lumentum deal
Marvell Technology agreed to buy Lumentum in a $115 billion deal, creating a major AI data center focus.
Oracle's move
Oracle plans to sell $10 billion in common stock and $10 billion in bonds to finance its AI buildout.
Oil prices fall
Brent crude tumbled 7.63% to close at $104.77 per barrel as U.S. and Iran may resume peace talks.
Midterms approach
The U.S. midterm elections will be held on Tuesday, with Democrats expected to take control of the House of Representatives.
Market rotation
Investors rotated into defensive sectors like healthcare as tech stocks faced AI spending concerns.
Oracle upgrade
Stephens upgraded Oracle to overweight from equal weight, citing strong AI execution and growth potential.
Tech volatility
The Nasdaq-100 slid roughly 8% since Deutsche Bank downgraded it to neutral, with a potential reversal expected.
ISM manufacturing
The ISM manufacturing index increased to 55.5, showing U.S. factory activity accelerated in October.
Amazon AI spending
PhillipCapital upgraded Amazon to buy, predicting AI investments will pay off long-term despite short-term cash flow issues.
Oil price drop
Brent crude fell 7.63% to $104.77 per barrel amid hopes of U.S.-Iran peace talks.
European markets
European stock markets started November in the red, with travel and leisure stocks moving higher.
Market reaction
The market's longer-term bullish narrative remains intact despite short-term volatility from AI spending concerns.
At a glance
Nasdaq Composite dropped 1.07% to 25,164.32 as investors shifted from tech to other sectors after AI spending worries.
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