Nasdaq Falls as Dow Gains

NEW YORK, NY – November 2, 2026 (STL.News) Stock Market – The U.S. stock market finished Monday’s trading session mixed as an early Wall Street rally faded, technology stocks declined, and investors prepared for Tuesday’s midterm elections. The Dow Jones Industrial Average advanced, but the S&P 500 and Nasdaq Composite finished lower as concerns about artificial intelligence spending continued to pressure major technology companies.

Falling crude oil prices initially encouraged investors as possible diplomatic progress between the United States and Iran raised hopes of easing disruptions to global energy supplies. However, selling pressure returned to technology shares, overwhelming gains across much of the broader market.

The session highlighted growing differences between companies benefiting from lower energy costs and technology businesses facing questions about the profitability of expensive AI investments.

Stock Market Today: Major Index Closing Results

According to the Associated Press and Reuters, the major U.S. indexes closed November 2, 2026, as follows:

The S&P 500 surrendered an early gain of approximately 1.1%, while the Nasdaq experienced renewed selling pressure.

Despite Monday’s losses, all four indexes remained positive for 2026. The S&P 500 was up approximately 10.2% year to date, the Dow had gained 8.2%, the Nasdaq remained 8.3% higher, and the Russell 2000 had advanced 13.1%.

Nearly seven out of every ten S&P 500 stocks advanced Monday. However, losses among heavily weighted technology companies were substantial enough to push the benchmark lower.

Technology Stocks Continue to Struggle

Technology shares remained under pressure after a difficult October, when the Nasdaq fell about 5.3%.

Investors have grown increasingly concerned about the enormous financial commitments tied to artificial intelligence infrastructure.

Major technology companies are investing heavily in data centers, advanced semiconductors, networking equipment, and electricity infrastructure. Although AI continues to attract substantial investment, shareholders are questioning whether those expenditures will generate sufficient profits.

Nvidia initially advanced about 2.6% on Monday before reversing and closing 1.3% lower.

Alphabet also surrendered an early advance, finishing down 0.3%.

Oracle declined after announcing plans to raise about $20 billion through debt and equity financing, reinforcing concerns about the financial requirements of expanding AI infrastructure.

Apple fell approximately 1.5% during regular trading ahead of its quarterly earnings announcement.

After the closing bell, Apple reported earnings that exceeded expectations, supported by demand for its iPhone 18 Pro lineup. The results were released after regular trading ended and therefore did not influence Monday’s official closing index figures.

Not every technology-related company declined. Amazon gained approximately 2.2%, while Tesla advanced 1%.

Marvell Announces $115 Billion Lumentum Deal

Another major technology development involved Marvell Technology and Lumentum.

The companies announced a definitive agreement under which Marvell would acquire Lumentum in an all-stock transaction carrying an implied enterprise value of approximately $115 billion.

Under the agreement, Lumentum shareholders would receive 4.5 Marvell shares for each Lumentum share.

The proposed acquisition would combine semiconductor and optical communications technologies used in artificial intelligence and cloud computing infrastructure.

According to the companies’ SEC-filed announcement, Lumentum shareholders would own approximately 33% of the combined company after completion.

The transaction is expected to close in the first half of 2028, subject to shareholder and regulatory approvals and customary closing conditions.

The acquisition has been announced but is not yet complete.

Investors reacted negatively, sending Marvell shares down 12.7% and Lumentum shares down 18.6% Monday.

Oil Prices Plunge on Iran Diplomatic Developments

One of Monday’s most important developments occurred in energy markets.

Brent crude oil fell about 7.6% to $104.77 per barrel as investors reacted to indications of possible diplomatic progress between the United States and Iran.

Reuters reported that Iran had expressed openness to peace negotiations following months of conflict in the Middle East.

The possibility of reduced tensions raised hopes that disruptions affecting international energy transportation could eventually ease.

The Strait of Hormuz remains critical to global petroleum shipments, and uncertainty in the region has contributed to elevated energy prices.

Lower crude prices could benefit airlines, cruise operators, trucking companies, manufacturers, and other businesses facing substantial fuel expenses.

United Airlines gained 4.8%, Southwest Airlines advanced 3.6%, and Carnival rose 4.2%.

Lower energy costs could also eventually benefit consumers through reduced gasoline prices and transportation expenses.

However, diplomatic negotiations remain uncertain, and crude prices could rise again if regional tensions intensify.

Monday’s decline therefore represented a potentially favorable development rather than confirmation that energy disruptions had ended.

Treasury Yields and Manufacturing Activity

Longer-term U.S. Treasury yields moved lower Monday as investors evaluated developments in energy markets and the broader economic outlook.

Treasury yields influence borrowing costs throughout the economy, including mortgages, corporate financing, and government debt.

Lower yields can support stock valuations, although Monday demonstrated that declining borrowing-cost benchmarks do not necessarily produce a broad market rally.

Meanwhile, the Institute for Supply Management reported stronger U.S. manufacturing activity in October.

The Manufacturing Purchasing Managers’ Index increased to 55.5 from 54.5 in September, exceeding economists’ expectations.

A reading above 50 indicates expansion in manufacturing activity.

The manufacturing Prices Index fell to 75.2 from 77.9, indicating that input prices continued to rise, but at a slower pace.

The figures suggested continued industrial expansion alongside persistent inflationary pressure.

Midterm Elections Add Political Uncertainty

Tuesday’s November 3 midterm elections represent another significant event for Wall Street.

Voters will determine control of Congress, potentially influencing federal economic policy during the remaining two years of President Donald Trump’s second term.

Republicans currently control both chambers, while Democrats are seeking majorities in both.

Investors are monitoring the elections because changes in congressional control could influence taxation, federal spending, financial regulation, energy policy, healthcare, and artificial intelligence development.

If Republicans retain both chambers, the administration could face fewer legislative obstacles in pursuing its economic priorities.

If Democrats gain control of the House while Republicans retain the Senate, divided government could make major legislation more difficult to enact.

Democratic control of either chamber could also increase congressional oversight of certain industries, including financial services, cryptocurrency, and artificial intelligence.

However, President Trump would retain veto authority regardless of the congressional outcome.

Election results do not automatically determine stock market performance. Corporate earnings, inflation, economic growth, and interest rates remain fundamental influences.

Corporate Earnings and Economic Reports Ahead

Corporate earnings remain another important influence on Wall Street this week.

Apple and Palantir reported results after Monday’s closing bell, while Advanced Micro Devices was scheduled to release earnings Tuesday.

Investors are examining revenue growth, profit margins, capital expenditures, and management guidance for evidence that artificial intelligence investments can generate sustainable returns.

Another major economic event is the October U.S. employment report, scheduled for Friday, November 6.

The report is expected to provide updated information about job creation, unemployment, and wage growth.

Employment conditions influence consumer spending and Federal Reserve interest rate expectations.

Stronger hiring could indicate continued economic resilience, while weaker figures might raise concerns about slowing growth.

Wall Street Outlook for November

Monday’s trading demonstrated that investors remain cautious despite potentially encouraging developments in energy markets.

The Dow’s advance suggested continued demand for selected established companies, while the Nasdaq’s decline reflected persistent concerns about technology valuations.

The S&P 500’s negative finish, despite gains among most constituent stocks, illustrated the considerable influence of heavily weighted technology companies.

A sustained recovery may require greater confidence that artificial intelligence investments will generate profitable growth.

Lower energy prices could help reduce inflationary pressure, but geopolitical uncertainty remains significant.

Meanwhile, midterm elections, corporate earnings, and employment data could add volatility.

Investors will be evaluating whether October’s technology selloff represents a temporary correction or a longer-lasting reassessment of corporate valuations.

Conclusion

The U.S. stock market began November with mixed results as the Dow Jones Industrial Average gained 0.41%, while the S&P 500 declined 0.51% and the Nasdaq Composite fell 1.07%.

Technology stocks remained under pressure as investors questioned the enormous financial commitments associated with artificial intelligence.

Meanwhile, falling crude oil prices supported fuel-sensitive businesses and raised hopes that inflationary pressures could eventually ease.

Tuesday’s midterm elections, additional corporate earnings, and Friday’s employment report will help shape market expectations during the coming sessions.

The central question for Wall Street is whether improving economic conditions and lower energy costs can overcome continued concerns about technology spending and corporate valuations.

Monday’s trading demonstrated that the answer remains uncertain.

Sources: Associated Press and Reuters reporting dated November 2, 2026; Marvell Technology and Lumentum’s SEC-filed transaction announcement; Institute for Supply Management’s October 2026 manufacturing report; and the U.S. Bureau of Labor Statistics economic release calendar.

Financial Disclaimer: This article is provided for general news and informational purposes only. It does not constitute legal, tax, investment, or financial advice. Stock market investments involve risk, including the potential loss of principal.