Nasdaq 100 dips into correction as AI chip stocks fall
The Nasdaq-100 briefly entered correction territory on October 30, 2026, after dropping 3.46% to close at 28,384.85—10% below its October 6 record of 31,224.47. It recovered before the close but still marked its third 10%+ decline this year, raising doubts about AI-driven data center spending payoffs. Semiconductor stocks led the selloff, with Intel (INTC) shares plunging 28.6% after cutting its…
Key points
- Nasdaq-100 briefly hit 10% below record on October 30, 2026, closing at 28,384.85 after intraday low of 28,093.24
- Semiconductors led the drop: Intel (INTC) shares fell 28.6%, NVIDIA (NVDA) down 4.2%, and QQQ’s semiconductor-heavy holdings dragged the index
- Investors question AI capex payoff, with Intel warning of 38% gross margin in Q4 (vs. 44.1% in Q3) and PC demand slowdown
Portfolio manager Joe Tigay of Equity Armor Investments called the shift from ‘hopes and dreams’ to a ‘show me’ phase, signaling skepticism over whether AI-driven capex will justify costs. Intel’s gross margin warning (38% vs. 3Q’s 44.1%) and PC slowdown fears added to the pressure. The VIX volatility index spiked to 23.93 but settled at 19.41, suggesting panic eased. Investors now watch Apple’s earnings (November 2), midterm elections (November 3), and NVIDIA’s report (mid-November) for clues. A close below the intraday low of 28,093.24 could solidify the correction.
The story so far
3 episodes →- Nasdaq 100 dips into correction as AI chip stocks fallthis story
The Nasdaq 100 Briefly Fell Into a Correction as the AI Trade Cracks
247wallst.com · 31 October 2026
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