Nasdaq slips 1% as Dow jumps 566 points after Friday AI‑selloff (3 Nov)

AI‑investment concerns trigger the biggest October Nasdaq decline since early 2025

The Nasdaq lost 5.3% for the month of October, marking its biggest monthly decline since early 2025, after a Friday sell‑off driven by worries that AI spending outpaces near‑term cash generation.

Finance Yahoo reported the Nasdaq’s monthly decline was also linked to volatility from tariff decisions by the Trump administration. Nvidia’s share price swung from a 2.6% gain to a 0.3% drop after a 4.2% slide on Friday. Investors have been assessing slowing PC demand and financial pressures at Intel’s manufacturing operations. Tom Sosnoff said AMD, Nvidia and Micron stocks ‘have not sold off enough’.

These facts show that worries over the pace and financing of AI projects are pressuring technology stocks, contributing to the Nasdaq’s 5.3% October loss and the broader market’s cautious stance.

Falling oil prices boost market confidence after Friday’s tech sell‑off

Crude oil prices fell about 6% on Monday as talks between Iranian and Qatari officials raised hopes of ending the US‑Israeli war, which eased concerns about Middle‑East supply disruptions. Trading‑view data showed Brent futures declining around 5% to $106.63 a barrel and US West Texas Intermediate futures falling more than 6.4% to $97.44.

The same diplomatic optimism that softened oil markets also lifted market confidence after Friday’s technology‑led sell‑off, according to Eurasia Business News.

In corporate earnings, a company reported a net profit decline of 38.3% year‑on‑year to Rs. 200 crore from Rs. 324 crore. Its revenue grew 22.9% year‑on‑year to Rs. 462 crore from Rs. 376 crore. EBITDA rose 66.8% year‑on‑year to Rs. 41.7 crore from Rs. 25 crore, improving the EBITDA margin to 9% from 6.6%. Another firm posted a net profit increase of 76.9% year‑on‑year to Rs. 46 crore from Rs. 26 crore. One‑time gains stood at Rs. 35 crore against Rs. 22 crore year‑on‑year.

A different company saw revenue decline 6.3% year‑on‑year to Rs. 1,944 crore from Rs. 2,074 crore. EBITDA fell 13.9% year‑on‑year to Rs. 93 crore from Rs. 108 crore, and the EBITDA margin slipped to 4.8% from 5.2%. Yet another reported a net profit decline of 21.2% year‑on‑year to Rs. 52 crore from Rs. 66 crore.

Another firm posted revenue growth of 10% year‑on‑year to Rs. 1,559 crore from Rs. 1,418 crore. EBITDA grew 15.5% year‑on‑year to Rs. 216 crore from Rs. 187 crore, lifting the EBITDA margin to 13.9% from 13.2%. Net profit rose 29.4% year‑on‑year to Rs. 48.5 crore from Rs. 37.5 crore. A further company beat revenue estimates, posting Rs. 18,401 crore, up 1.8% year‑on‑year, against an estimate of Rs. 17,520 crore. Its EBITDA fell 17.5% year‑on‑year to Rs. 5,160 crore from Rs. 6,251 crore, missing the estimate of Rs. Net profit declined 20.1% year‑on‑year to Rs. 4,137 crore from Rs. 5,176 crore, just above the estimate of Rs. 4,129 crore.

Another firm reported revenue growth of 30.3% to Rs. 142 crore from Rs. 109 crore. It posted a net loss of Rs. 68.2 crore, improving from a loss of Rs. 78.3 crore year‑on‑year. Yet another posted revenue growth of 18.5% year‑on‑year to Rs. 4,109 crore from Rs. 3,467 crore. Its EBITDA declined 3.4% year‑on‑year to Rs. 361.6 crore from Rs. 374.3 crore.

US futures point higher ahead of Tuesday’s midterm elections and earnings week

Market sentiment is currently being shaped by Tuesday’s midterm elections and a busy calendar of corporate earnings. These elections will determine whether Democrats gain control of Congress from Republicans, with expectations that Democrats will win the House of Representatives while Senate control remains uncertain.

Corporate earnings remain in focus as companies like McDonald’s and Qualcomm are scheduled to report their results this week. AMD is also due to report its earnings later in the week.

Trading activity on Monday saw Alphabet end about 1% higher, Amazon rally 2.2%, and Nvidia edge up 1.6%.

Indian benchmarks climb over 1.6% on Monday, defying mixed global cues

Idexx Laboratories surged 21.7% adding to the upbeat market tone.

Corporate earnings spotlight: Apple, Intel, AMD and other tech names report this week

Intel’s shares dropped 2.6% on Friday, marking the steepest one‑day loss since the 1980s, after the company projected revenue below analysts’ expectations and said it does not anticipate positive cash flow this year. AMD, scheduled to report earnings later this week, slid 7.5% on Tuesday ahead of its quarterly report.

What’s next: oil‑price outlook, AI funding trends and the October employment report

Meanwhile, leisure‑travel stocks showed strength with Carnival rising 3.8% and Marriott International climbing 4.2%.