US Tech Stocks Recover on Tuesday After AI Spending Selloff

US technology stocks recovered on Tuesday, November 3, 2026, after a selloff driven by worries about spending on artificial intelligence. The Guardian reported that the S&P 500 closed up 0.37% and the tech-heavy Nasdaq rose 0.83%. The Dow Jones Industrial Average dropped 0.38%.

The rebound followed a steep decline. The Nasdaq ended Monday, November 2, in correction territory, meaning it was down 10% from its record close on October 6. In October the index recorded its largest monthly fall since March 2025. A global stock rebound had already faded on Monday, according to Reuters, as selling among popular technology stocks picked up.

The pressure on AI-linked shares began in mid-October. On October 15, a sell-off of those shares spread through global markets amid fears about rising inflation and possible future interest rate hikes, which are increases in the cost of borrowing. Technology stocks then fell for a third straight week through October 30, in a rout driven by anxiety about whether AI will generate enough profit, according to Bloomberg. On that Friday the Nasdaq fell 2.86%, the S&P 500 fell 1.82% and the Dow fell 1.09%, with concerns about AI-related spending cited as the main driver.

Those concerns center on large sums. US hyperscalers, the big cloud computing companies, spent $425 billion on AI-related capital expenditure, meaning money put into long-lived assets such as data centres, in 2025, according to a Guardian report from October 20.

Tuesday's gains were uneven across companies. Nvidia shares rose 2.3% after four sessions of declines. Advanced Micro Devices, Broadcom and Micron Technology all jumped. Apple's shares fell 1.9% after the company forecast a worse-than-expected profit margin, which it linked to higher memory chip costs. Check Point Software shares had dropped 11% in premarket trading on Monday after it reported third-quarter revenue below estimates, according to Bloomberg. On Tuesday, four of the S&P 500's 11 sectors advanced, led by technology, and the Nasdaq 100 rose 0.9%, according to Bloomberg.

Oil also moved lower. Brent crude fell to $103 a barrel on Tuesday, down from $117 at the end of October.

Despite the autumn slump, the major indexes remain ahead for the year. As of November 3, the S&P 500 was up 10%, the Nasdaq was up 9% and the Dow was up 7%.