Market brief — November 3, 2026

In 30 seconds

• Yesterday, Monday November 2, European equities rose, while US technology shares fell again as investors questioned whether artificial-intelligence spending can produce sufficient profits.^[1][7]
• The combination of a technology sell-off, falling oil prices and political uncertainty makes the market increasingly selective rather than broadly bullish.^[3][7]
• For individual savers, the main issue is diversification: defensive sectors are holding up better, but the mixed market breadth does not yet confirm a durable market recovery.

The figures from the last session

These are Monday’s closing levels, not live prices for Tuesday.

• CAC 40: 8,047.69, up 0.98%; strongest European move in the supplied data.
• Euro Stoxx 50: 6,176.06, up 0.73%; broad European rebound.
• DAX: 25,981.09, up 0.63%; German shares also advanced.
• S&P 500: 7,541.40, down 0.51%; technology weakness offset broader support.
• Nasdaq: 25,164.31, down 1.07%; chip and artificial-intelligence concerns dominated.^[5][7]

The subject of the day, explained

The main issue is the sustainability of the artificial-intelligence investment boom. US technology shares continued to decline on Monday, while Asian semiconductor markets weakened on Tuesday. Reports indicated that a US chipmaker index had fallen about 12% over three sessions, and the Nasdaq 100 had entered a correction from its recent peak.^[3][6]

The mechanism is straightforward: companies are committing very large sums to data centres, chips and computing capacity before the resulting profits are certain. If investors fear that revenue will arrive too slowly, share prices can fall even when the broader economy remains resilient. Lower oil prices provide some relief by reducing inflation pressure, but that benefit was not enough to offset concerns about technology earnings.^[7][9]

The day’s analysis

The latest session was divided rather than uniformly negative. European indices rose, while the Nasdaq fell more than the S&P 500, showing that the pressure remains concentrated in growth-oriented technology. The scanner supports this interpretation: only 53% of tracked stocks are above their 200-day average and 48% above their 50-day average. That is a mixed structure, not broad participation.

The strongest signals came from utilities, beverages and pharmaceuticals, sectors whose earnings are generally less dependent on aggressive technology investment. Keurig Dr Pepper, Essential Utilities, FirstEnergy, PPL and Consolidated Edison all appeared among the highest-scoring names. This defensive leadership partly contradicts the European rebound and suggests that investors are rotating within equities rather than abandoning caution.

The most probable scenario over the next few sessions is continued volatility, with technology shares determining the direction of US indices. Stabilisation would require chip stocks to stop falling and corporate forecasts to show that capital spending is translating into revenue. A renewed decline in the Nasdaq below Monday’s close of 25,164.31 would weaken that scenario. Conversely, sustained gains accompanied by broader participation above the 50-day average would suggest that the correction is losing force.

The word of the day

Market breadth measures how many shares participate in a market move. For example, an index can rise because a few very large companies advance, while breadth remains weak if most other shares decline.

What the scanner sees

• Keurig Dr Pepper (KDP), beverages: The course moved above its highest level of the previous 20 sessions, with rising volume and a strong trend indicator. Its defensive consumer sector does not support the technology-led market narrative; it supports the rotation toward steadier businesses.
• Essential Utilities (WTRG), utilities: The course exceeded its 20-session high, with higher volume and a strong directional trend. Utility leadership is consistent with caution because investors often value relatively visible cash flows when growth shares are under pressure.
• Mastercard (MA), financial services: The course moved above its 20-session high, with increased volume and a strong trend. This signal is less defensive and suggests that parts of the economy remain supported, although it does not offset the weakness in large technology companies.

The scanner’s results therefore confirm selective rotation, not a broad return to risk-taking.

The agenda

• US midterm elections: The result can affect expectations for fiscal policy, regulation and trade, increasing market volatility.^[7][9]
• US Treasury quarterly refunding announcement: Details of government borrowing can influence bond yields and the valuation of equities.^[7]
• US technology earnings and outlooks: Forecasts for capital spending, margins and artificial-intelligence revenue will determine whether the technology sell-off continues.^[7]
• US-Iran diplomatic developments: Further progress could keep oil prices lower, while renewed tensions could reverse that relief.^[1][6]

To watch

• Technology earnings: Additional warnings about margins or infrastructure spending could push the Nasdaq below Monday’s close.
• Oil and geopolitics: A breakdown in US-Iran discussions could lift crude prices again and revive inflation concerns.^[1][9]

The key figure: Nasdaq 25,164.31, down 1.07% on Monday—evidence that technology remains the main source of market weakness.