Nasdaq-100 Enters Its Third Correction of 2026

The Nasdaq-100 fell 10 percent from its most recent peak, entering its third technical correction since the start of the year, after a fresh sell-off in technology stocks. The pullback was driven by concerns over the effectiveness of AI spending, midterm-election risk and a lack of liquidity, and the index recorded its worst monthly performance since March 2025.

A correction is defined as a fall of 10 percent or more from a recent high, and three in a single year is unusual for the benchmark. Each episode in 2026 has followed the same pattern: excitement over artificial intelligence lifting valuations, then doubt over whether the spending will pay off quickly enough.

The latest leg lower hit chipmakers hardest, with semiconductor stocks extending a late-October slide. Oracle shares fell more than 8 percent on November 2, while Marvell fell about 13 percent and Lumentum about 17 percent, as investors questioned the funding required for AI infrastructure.

Market watchers say the sell-off is less about a single earnings miss than about a broader repricing of AI bets. Companies have committed hundreds of billions of dollars to data centers and chips, and shareholders are now demanding clearer evidence of returns.

Corrections do not necessarily signal a bear market, and the index has recovered from both earlier 2026 episodes. But with the election, a jobs report due Friday and Congress returning November 9, traders expect volatility to remain high in the near term.