S&P 500 Falls 0.51% on Nov 2, 2026 as Tech Sell-Off Extends

Key takeaways

• The S&P 500 fell 38.67 points, or 0.51%, to 7,541.40 at the close (21:00 UTC) on Monday, Nov 2, 2026, according to Yahoo Finance and CNBC.
• The Nasdaq Composite lost 1.07% to 25,164.32, while the Dow Jones Industrial Average rose 213.67 points, or 0.41%, to 51,983.98, as investors sold technology shares and bought industrial and consumer names.
• Marvell Technology dropped 12.55% and Lumentum 18.40%, according to Yahoo Finance data, after CNBC reported that Marvell agreed to buy Lumentum in a $115 billion deal; Oracle fell 8.59% after filing to raise $20 billion in stock and bonds.
• Oil slumped on hopes of renewed US-Iran diplomacy: January Brent futures settled at $104.77, down 7.63%, and December WTI at $96.46, down 7.36%, CNBC reported.
• The Cboe Volatility Index (VIX) jumped 8.91% to 21.15, and the 10-year Treasury par yield eased to 4.910% from 4.940%, according to the US Treasury.

Session recap

Wall Street ended Monday, Nov 2, split between technology and the rest of the market. The S&P 500 closed down 0.51% at 7,541.40 and the Nasdaq fell 1.07%, extending the tech sell-off that drove the S&P 500's 1.82% drop in the previous session on Friday, Oct 30. The blue-chip Dow gained 0.41%. Small caps slipped, with the Russell 2000 down 0.21%. For the wider picture, see Asian and global market closes.

Changes are measured against the Friday, Oct 30 close: 7,580.07 for the S&P 500, 25,437.00 for the Nasdaq, 51,770.31 for the Dow, 2,811.84 for the Russell 2000 and 19.42 for the VIX. Treasury par yields are the official end-of-day curve. The Treasury bases it on bid prices at about 15:30 New York time, and published Oct 30 levels of 4.56% for the 2-year and 4.94% for the 10-year. The Russell 2000 traded between 2,805.11 and 2,846.03 and closed near its session low. The VIX ranged from 18.03 to 21.77, according to Yahoo Finance.

What drove it

Chip and AI deal news weighed on the Nasdaq

The biggest drag came from semiconductors and AI infrastructure. CNBC reported that Marvell Technology agreed to buy optical-component maker Lumentum in a $115 billion deal. Both stocks fell sharply: Marvell lost 12.55% and Lumentum 18.40%, according to Yahoo Finance data. The selling followed Friday's rout, when Intel sank almost 29% after its fourth-quarter revenue guidance of $15 billion to $16 billion missed analysts' $17 billion estimate, Yahoo Finance noted.

Big Tech borrowing to fund AI

Oracle fell 8.59%, according to Yahoo Finance data, after it filed to sell $10 billion of common stock and $10 billion of bonds to fund its AI buildout, CNBC reported. Yahoo Finance said investors viewed the raise as adding leverage. Other large borrowers were also active. Yahoo Finance reported a $25 billion Microsoft note sale and, citing Bloomberg, a €6 billion Alphabet euro bond. Apple slipped 2.18% ahead of its quarterly report, which was scheduled for after Monday's close.

Oil's plunge lifted rate-sensitive and consumer stocks

Crude prices fell more than 7% on hopes that Washington and Tehran could return to talks. January Brent futures settled at $104.77 a barrel, down 7.63%, and December WTI settled at $96.46, down 7.36%, at the 19:30 UTC settlement, CNBC reported. In the Dow, consumer and housing names led the gains: Sherwin-Williams rose almost 6% and Home Depot gained 3.6%, according to CNBC. For background, see how oil price shocks feed into inflation and interest rates.

Mixed US economic data

The Institute for Supply Management's October manufacturing index rose to 55.5 from 54.5, above the 54.6 consensus. That marked a tenth straight month of expansion, Yahoo Finance reported. The ISM prices-paid gauge eased to 75.2 from 77.9. In contrast, CNBC reported that September construction spending fell 1.9%, the biggest monthly drop since April 2020.

Rate-hike debate keeps yields elevated

The 2-year Treasury yield edged up while the 10-year slipped, according to Treasury data. Rate expectations remain a central theme with the federal funds target range at 3.75% to 4.00%. Yahoo Finance reported that Apollo chief economist Torsten Sløk wrote in a Monday blog post that the Fed may need to raise rates by about 275 basis points by the end of 2027 to bring inflation back to its 2% target. That is one economist's view, not Fed guidance. For more on how yields work, see our 10-year Treasury yield explainer.

Earnings: winners outside tech

Several companies outside tech rallied on results. IDEXX Laboratories climbed 21.85%, according to Yahoo Finance data, after beating third-quarter estimates, CNBC reported. Tempus AI rose nearly 12% at midday on a similar beat, also per CNBC. After the close, Palantir reported third-quarter revenue of $2.313 billion, up 96% from a year earlier, against a $2.17 billion estimate, and raised its full-year revenue guidance to between $8.530 billion and $8.534 billion, Yahoo Finance reported. Palantir shares had fallen 3.79% during the regular session.

Political & policy watch

• Iran diplomacy: Secretary of State Marco Rubio said President Trump "hasn't made a decision" on attacking Iran and that Washington would prefer a peaceful resolution, CNBC reported. Iranian state media said an agreement was possible if the US showed goodwill, according to the same report. Yahoo Finance, citing Axios, reported that Trump wants to give diplomacy another try, while Israeli Prime Minister Benjamin Netanyahu has pressed for strikes. Bullquill has not independently verified these reports.
• Midterm elections: US midterm elections take place on Tuesday, Nov 3. CNBC reported that Democrats are expected to win the House and that control of the Senate is uncertain. The results could shape fiscal and trade policy expectations.
• Bank lending conditions: The Federal Reserve's Senior Loan Officer Survey showed a net 15% of banks narrowed loan spreads for large and midsize firms, down from nearly 27% in the previous quarter, Yahoo Finance reported.

What to watch next

• Monday, Nov 2, after the close: reaction to Apple's quarterly results, which were due after the bell (consensus EPS $2.00 on revenue of $113.46 billion, per Bloomberg data cited by Yahoo Finance).
• Tuesday, Nov 3: US midterm elections; AMD reports after the close, according to Yahoo Finance.
• This week: a run of US labor-market reports, ending with the October employment report on Friday, Nov 6, according to Yahoo Finance.
• Oil: any confirmed step toward US-Iran talks, or a breakdown in diplomacy, after Monday's 7.63% drop in Brent.
• Fed: markets will watch whether the labor data shifts expectations for the Federal Reserve's December meeting.

Risk checklist for readers

• Index divergence matters: a rising Dow and falling Nasdaq show sector rotation, so a single headline index can hide large moves underneath.
• The VIX above 20 signals that options traders expect larger swings over the next 30 days; it measures expected volatility, not direction.
• Election nights can bring sharp overnight moves in futures, currencies and Treasuries before cash markets open.
• Oil moves of more than 7% in a day can reverse quickly on geopolitical headlines; check official statements before drawing conclusions.
• Large deals and capital raises can pressure share prices through dilution or higher debt; company filings on SEC EDGAR give the official terms.
• Economic data are often revised; compare first releases from the BLS, Census Bureau and ISM with later revisions.

This article is for information only and is not investment advice.