Nasdaq Posts Worst Month Since March 2025

Intel shares plunged after a weak fourth-quarter forecast as broader stocks sold off on Friday.

Updated on Nov. 1, 2026 in Stock Markets

Nasdaq Posts Worst Month Since March 2025

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The Nasdaq Composite closed its worst month since March 2025, down 5.3%, after a Friday sell-off that saw the S&P 500 fall 1.82%. Intel lost almost a third of its value, dropping 28.6% after a weak fourth-quarter forecast.

Why it matters

The selloff reflects investor nervousness heading into midterm elections, with rising Treasury yields and growing odds of a Federal Reserve rate hike adding pressure to equities. Investors who bought shares with borrowed money were pushed to sell as prices fell.

Daily closing data shows the S&P 500 fell 1.82% and the 10-year Treasury yield closed at 4.93% on Friday, while the Nasdaq Composite posted its worst month since March 2025 at a 5.3% decline. It is unresolved whether these moves reflect a lasting shift or a short-term correction.

The players

Tom Lee

Tom Lee is a prominent Wall Street strategist known for his market commentary and forecasts.

Intel

Intel is a major American semiconductor manufacturer whose shares fell sharply after its fourth-quarter outlook disappointed investors.

Amazon

Amazon is a global e-commerce and cloud computing company whose heavy AI spending drove negative free cash flow.

The details

Intel fell 28.6% after a weak fourth-quarter forecast, its worst day since 1974, and Amazon reported $42.4 billion in negative free cash flow driven by heavy AI spending. Strategist Tom Lee said the selling looked like investors being forced to sell borrowed-money positions as prices dropped.

Thursday, October 30, 2026: Retail clients bought Alphabet shares.
Friday, October 31, 2026: Nasdaq sell-off and Intel and Amazon earnings reaction.
Tuesday, November 3, 2026: Midterm elections, before which Lee says big investors lack conviction to buy.

Market Dynamics

This month's 5.3% Nasdaq decline is its worst since March 2025, placing the current selloff against that earlier period of market stress. The Friday sell-off also comes as CME FedWatch puts the odds of a December rate hike at 72%, adding a monetary policy dimension to the pullback.

Investors with margin positions or borrowed-money trades face forced selling risk if prices keep falling. Holders of retirement accounts and index funds should note that the broad market declines affected major benchmarks, including the S&P 500 equal-weight index down 0.79%.

The takeaway

Market declines driven by forced selling often differ from fundamental shifts, so readers should separate short-term liquidation from lasting changes in company outlooks. Reviewing portfolio exposure to leveraged positions can help manage risk during volatile periods.

What happens next

Investors are watching the November 3, 2026 midterm elections and the possible December Federal Reserve rate hike, which CME FedWatch currently prices at 72%.