Nasdaq slips into correction as AI selloff meets rising funding costs

The Nasdaq 100 fell 1.4% to sit 10% below its peak and chip stocks lost 3.4%, while US crude dropped 7.4% to $96.46 on hopes of US-Iran talks, ahead of Tuesday's midterm elections

Deepakshi

Kristal Research & Marketing team

3 Nov2 min

Key takeaways — AI summary

The Nasdaq Composite fell 1.07% to 25,164 and the Nasdaq 100 lost 1.4%, now 10% below its peak — the technical correction line — in its worst three-day run since the April 2025 tariff shock; the semiconductor index dropped 3.4% and the S&P 500 fell 0.51% to 7,541, though the Dow rose 0.41% to 51,984 and eight of 11 sectors finished higher.
US crude fell 7.4% to $96.46 a barrel and Brent dropped 7.6% to $104.77 after Iran's president said the Supreme Leader had given room to negotiate and Axios reported Trump wants to give talks more time; Goldman Sachs raised its December Brent forecast to $105 from $90, and the 10-year Treasury yield eased to 4.91%.
Funding costs, not demand, drove the AI selloff: Oracle fell 8.8% as it filed to raise $20 billion ($10bn shares, $10bn bonds), with bond buyers demanding 2.75 points over Treasuries; Meta is eyeing at least $20bn of bonds after an S&P outlook cut, and CoreWeave (-8.6%) and memory names SanDisk (-6.6%) and Micron (-6%) also slid.
Marvell agreed to buy optical-parts maker Lumentum in a $115 billion all-stock deal at 4.5 Marvell shares per Lumentum share; Marvell fell 12.7% and Lumentum dropped 18.6%, with the deal not due to close until the first half of 2028.
Non-tech names rallied: IDEXX jumped 21.9% on an earnings beat, travel stocks gained about 4% on cheaper oil, and Morgan Stanley data showed hedge funds now hold less AI stock than its market weight for the first time since early 2023, with funds cutting risk before the midterms.

Generated by Kristal AI · reviewed by the research desk

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