Nasdaq-100 enters third correction of 2026 amid AI spending doubts

The Nasdaq-100 index officially entered a technical correction on Monday, Nov. 2, 2026, marking its third such decline of the year. The index closed at 27,989.82, representing a 10.4% drop from its record-high close of 31,224.47 reached on Oct. 6, 2026.

This decline follows a period of significant volatility that resulted in the index experiencing its worst monthly performance since March 2025. The current downturn is largely attributed to investor concerns regarding the return on investment for massive capital expenditures directed toward artificial intelligence infrastructure, including data centers and computing power.

Market participants are re-evaluating their positions in major technology companies following recent earnings reports from Alphabet, Amazon, Intel, and ServiceNow. Steve Sosnick, chief strategist at Interactive Brokers LLC, noted that investors are moving away from the assumption that all AI-related investments will yield phenomenal returns and are now asking sober questions about return on investment and capital.

Kevin Hassett, director of the White House National Economic Council, addressed the market movement on Monday, stating that the correction does not necessarily signal a broader risk for the AI sector. He emphasized that the industry remains well-capitalized and that investors should feel reassured by the current financial state of these companies.

The Nasdaq-100 previously underwent corrections in late March 2026 and late July 2026. As the market navigates this latest decline, analysts remain divided on the outlook. While some, including those at Morgan Stanley, anticipate a steady recovery once current uncertainties subside, others are monitoring the index for signs of stabilization or a potential slide into a bear market.