Markets
Wall Street Closes Mixed as Nasdaq Slides on Chip Selloff While Oil Plunges on Iran Peace Hopes
Image: 1970luizcosta via Pixabay
The Dow edged higher and the 10-year yield eased as crude fell about 8%, but tech lost ground ahead of Tuesday's midterm elections.
By Emmanuel Cruz ·
U.S. stocks ended Monday split between a tech-led decline and gains in more defensive and cyclical corners of the market, while crude oil fell sharply on hopes for a diplomatic end to the conflict involving Iran [1][2].
At the close, the S&P 500 finished at 7,541.40, down 0.51%. The Nasdaq Composite fell 1.07% to 25,164.32, and the Dow Jones Industrial Average rose 0.41% to 51,983.98. The Russell 2000 slipped 0.21% [1]. Reuters' preliminary figures showed the same pattern, with the Dow up and the Nasdaq the weakest of the three major benchmarks [2].
Technology and chip shares drove the losses. Yahoo Finance reported the tech sector was down about 2.4% as of 2:40 p.m. ET, and Reuters said the pressure followed a Friday selloff tied to worries that spending on AI infrastructure is outpacing near-term cash generation. The Nasdaq lost more than 5% in October [1][2]. Marvell Technology tumbled after agreeing to buy optical components maker Lumentum in a roughly $115 billion all-stock deal, and Intel fell further after a 29% drop on Friday following weak revenue guidance [2]. Oracle declined after filings showed plans to raise $20 billion through debt and stock sales [1][2]. Amazon and Tesla were among the stocks that rose [2].
Money moved into consumer cyclical, financial services and consumer defensive shares, which helped the Dow, according to Yahoo Finance [1].
Oil was the biggest mover across assets. West Texas Intermediate futures settled at $96.08 a barrel, down $8.04 or 7.72%, and Brent traded below $105 after a decline of about 7.9% [1]. Reuters attributed the drop to signals from Iran that it was open to peace talks after eight months of conflict in the Middle East [2]. Yahoo Finance linked it to reports that Washington and Tehran are seeking a diplomatic resolution [1].
In bonds, the 10-year Treasury yield fell to 4.894%, down about 3.5 basis points, as longer-dated yields moved lower [1][2]. Lower oil prices ease one of the inflation pressures that policymakers have been watching, though traders still see a December Federal Reserve rate increase as more likely than not: CME Group data cited by Yahoo Finance showed a 76% probability [1].
Valuations offered some context. Reuters, citing LSEG data, said third-quarter earnings for S&P 500 companies are on track to rise more than 30% from a year earlier, led by AI heavyweights, while the index trades at about 19 times expected earnings, its lowest multiple since 2023 [2].
After the bell, Palantir reported third-quarter results that beat analyst estimates, though its shares were lower in extended trading, according to 24/7 Wall St. [3]. Apple also reported after the close.
What to watch next: Tuesday brings the U.S. midterm elections, with polls suggesting Democrats are likely to win the House and the Senate outcome less clear, according to Reuters. Advanced Micro Devices reports after the close, and the October jobs report is due Friday. Oil traders will be watching the Iran talks closely [1][2].
Sources:
[1] Yahoo Finance, "Stock market today: S&P 500 and Nasdaq extend tech sell-off, Dow gains as oil prices plunge", November 2, 2026. https://finance.yahoo.com/markets/live/stock-market-today-monday-november-2-dow-sp-500-nasdaq-091835095.html
[2] Reuters (via Virginia Business), "S&P 500 ends down; Apple dips ahead of quarterly report", November 2, 2026. https://virginiabusiness.com/sp-500-lower-apple-dips-quarterly-report-midterm-elections/
[3] 24/7 Wall St., "Palantir Q3 2026: Commercial Revenue Tops Government for First Time", November 2, 2026. https://247wallst.com/cards/palantir-q3-2026-earnings-pltr-01m6f1kk98agygmzse44h9307q
This article was produced with AI assistance. It is for informational purposes only and is not financial advice. StockVolt and its authors may hold positions in securities mentioned.