The Nasdaq Composite closed Monday at 25,164.32, down 272.68 points, or 1.07%, as chip shares sold off again. Nasdaq’s historical index data confirms the closing level. The decline came as the Dow rose and the S&P 500 fell, leaving investors to weigh a sharp reversal in AI hardware against lower oil prices and Election Day uncertainty.
The Nasdaq’s weakness was concentrated in chips
Monday’s move was not a uniform retreat from equities. The Dow gained 0.4%, while the S&P 500 lost 0.5% and the Nasdaq Composite fell 1.1%. About seven in ten S&P 500 stocks advanced, according to Yahoo Finance, but nearly every chip stock declined. The outlet estimated that semiconductor names lost more than $400 billion in market value in one session.
Intel, memory and storage stocks led the decline, while Marvell also fell after agreeing to buy Lumentum. Nvidia held up better, but its losses since early October show how quickly investors are reassessing AI hardware. The Nasdaq’s tech concentration leaves it more exposed to that repricing than the broader market.
Oil’s plunge offered a different signal
Brent crude fell as much as about 7.9% intraday after reports of renewed U.S.-Iran diplomacy, then closed about 7.6% lower at $104.77. Talks involving Qatari mediators raised hopes of an agreement, but no deal had been reached and disputes over sanctions, security and Iran’s nuclear program remained. Oil fell on a shift in perceived risk, not a settled outcome.
Lower oil can ease concerns about fuel costs and inflation, supporting parts of the economy that are sensitive to energy prices. Airlines and cruise operators benefited as crude dropped, helping explain why most S&P 500 stocks rose even while technology shares weakened. That relief did not offset the chip rout in the Nasdaq, where investors were focused on whether the spending behind AI infrastructure can produce returns fast enough to justify current valuations.
Election markets are active, but they are not equity forecasts
Voters go to the polls Tuesday in the U.S. midterm elections. Prediction-market prices offer one real-time measure of how traders view control of Congress, but they do not show how equities will respond to any particular result. A live tracker of Polymarket data showed about $5.1 million in 24-hour volume on the “Republicans Sweep” balance-of-power contract this morning, with the outcome priced at roughly 6%. That is trading activity in one contract, not a poll or a reliable forecast of the election result.
The election also arrives after a bruising month for technology. Reuters reported that the Nasdaq fell 5.3% in October as investors questioned whether large AI infrastructure budgets would generate near-term cash flow. FinanceFeeds’ October closing report put the index at 25,437 before Monday’s 1.07% decline. The index is therefore entering Election Day below its month-end level, after a selloff that predates the vote.
AMD, Super Micro and jobs data will test the trade
AMD and Super Micro are scheduled to report after Tuesday’s close, giving investors another test of demand for AI compute and servers. Super Micro raised its preliminary first-quarter revenue outlook to $18.5 billion to $19.5 billion in October, so investors will look for delivered results, margins and evidence that the orders can translate into profitable growth. AMD’s report may help show whether chip demand remains broad enough to support the sector’s valuations.
Friday’s U.S. Employment Situation report for October is due at 8:30 a.m. Eastern Time on November 6, according to the Bureau of Labor Statistics. Resilient hiring could sustain growth expectations while complicating inflation; weaker hiring could revive rate-cut expectations but raise questions about demand. Earnings, election results and labor data offer separate tests for a divided market.
Takeaway: Monday’s drop reflected a concentrated retreat in chips, not a broad collapse in stocks. Oil’s fall and gains across most S&P 500 shares point to a market rotating between sector risks, while Election Day, AI earnings and Friday’s jobs report could determine whether that split continues.
