Nasdaq 100 Falls as Intel Selloff Weighs on Tech Stocks Ahead of Jobs Data

Technology stocks remain under pressure as investors reassess AI valuations after Intel’s disappointing earnings outlook, with this week’s employment data, Treasury refunding announcement, and another major chipmaker’s earnings report giving Wall Street fresh catalysts.

The Nasdaq Composite fell 1.1% on Monday, extending Friday’s sharp decline, while the Dow Jones Industrial Average gained 0.4% as money rotated out of technology shares.

October ended on a weak note for growth stocks. The Nasdaq lost 5.3% for the month, its worst monthly performance since March 2025, while the S&P 500 slipped 0.9% and the Dow gained 1.7%.

Intel’s Earnings Trigger a Tech Selloff

Intel (NASDAQ:INTC) sparked Friday’s rout after its fourth-quarter outlook fell short of expectations, sending shares down nearly 29% in their biggest one-day decline in decades.

The chipmaker reported third-quarter revenue of $16.5 billion, up 21% from a year earlier. It projected fourth-quarter revenue of $15 billion to $16 billion and non-GAAP earnings of $0.25 per share, disappointing investors despite solid quarterly growth.

Sandisk fell about 13.5% as investors worried memory pricing may have peaked despite stronger-than-expected results. Reddit dropped roughly 29% after earnings, while Amazon’s results renewed concerns about the scale of AI-related spending.

The selling hit the broader market hard. The Nasdaq-100 fell 3.46%, the steepest decline among the major indexes. The S&P 500 lost 1.82% to 7,580.07, while the Nasdaq Composite dropped 2.86%, marking their worst session since June.

Tech Stocks Extend Their Decline

Monday briefly offered signs of stabilization before selling returned.

The S&P 500 climbed as much as 1.1% early in the session before closing down 0.5% at 7,541.40, leaving it about 3.5% below its October 6 record close. The Nasdaq Composite fell 1.07% to 25,164.32, while the Dow finished at 51,983.98.

Investors shifted toward consumer and cyclical shares as crude oil fell sharply on signs that Washington and Tehran remain open to a diplomatic path that could ease tensions.

Treasury yields also moved lower alongside oil, suggesting that energy prices and geopolitical developments played a bigger role than changing Federal Reserve expectations. That combination eased pressure on interest-rate-sensitive sectors while leaving expensive technology stocks under renewed scrutiny.

Tuesday’s midterm elections add another layer of uncertainty to an already crowded week for investors.

Fed Officials Remain Divided on Inflation

The Federal Reserve kept its benchmark interest rate at 3.75% to 4.00% on October 28 after raising rates in September, but the decision exposed divisions inside the central bank.

The vote was 10-2, with Governor Lisa Cook and Cleveland Fed President Beth Hammack favoring another quarter-point increase. Cook’s vote marked her first dissent since joining the Board of Governors in 2022.

Fed Chair Kevin Warsh said the economy remains strong while inflation is still running above target, and Fortune reported that traders are betting on another rate increase at the December meeting.

Labor cost data painted a more measured picture. The Employment Cost Index rose 0.8% in the third quarter and 3.4% from a year earlier, matching forecasts and holding at the same annual pace for several quarters. Wages increased 0.7% while benefit costs rose 0.9%.

Jobs Data and AMD Earnings Take Center Stage

The labor market now becomes the week’s biggest test.

The Bureau of Labor Statistics releases September Job Openings and Labor Turnover Survey data on Tuesday, followed by preliminary third-quarter productivity and labor cost figures on Thursday.

Friday’s October employment report could carry the greatest market impact ahead of the Fed’s December 8-9 meeting.

September payrolls increased by just 29,000, well below the roughly 90,000 economists had expected, while unemployment rose to 4.2% from 4.1%, raising the stakes for another closely watched employment report.

The Treasury’s quarterly refunding announcement arrives Wednesday. Investors largely expect coupon auction sizes to remain unchanged, with attention shifting toward potential borrowing adjustments that could emerge in 2027 as deficits continue to grow.

Advanced Micro Devices (NASDAQ:AMD) reports third-quarter earnings after Tuesday’s closing bell, giving investors another important read on AI demand after last week’s semiconductor selloff.

Technology stocks enter November under greater pressure as investors demand stronger earnings support for elevated AI valuations. Intel’s disappointing outlook has put that scrutiny back at the center of the market, while this week’s employment report, Treasury borrowing plans and AMD’s results will help determine whether the sector can regain momentum.