Nasdaq Drops 1% on AI Spending Fears as Money Rotates Into the Dow

Wall Street Starts November Split

On Monday, 2 November 2026, US indices went in different directions:

• Nasdaq Composite: about 25,164, down roughly 1.1%
• S&P 500: about 7,542, down roughly 0.5%
• Dow Jones: up close to 1%

What happened

Worries about how much big tech is spending on AI, and how long it will take to pay off, triggered another round of selling in chip and AI stocks. Investors moved money into traditional industries instead, which lifted the Dow.

Why it matters

This "rotation" pattern, where one part of the market falls while another rises, can keep the S&P 500 flat even during sharp moves underneath. Index traders and sector traders can have very different days.

Exact closing figures vary slightly between data providers. Educational content, not investment advice.