Tech Stocks Slide Into Bear Market as S&P Lags
Three-quarters of technology stocks have entered bear-market territory even as the broader S&P 500 holds near its record.
Updated on Nov. 1, 2026 in Stock Markets
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Three-quarters of technology stocks are now in bear-market territory, while the S&P 500 sits 3.5% below its record high. The Nasdaq 100 lost roughly $4 trillion in market value over 25 days as AI stocks fell more than 13% in October.
Why it matters
The divergence shows that losses are concentrated in AI-linked names, while the rest of the S&P 500 continued to rise. For U.S. investors, the split means broad index gains can mask steep declines in the technology sector.
Market data show the S&P 500 3.5% below its record, while 58% of its constituents trade at least 20% below their individual highs and 91% of information technology stocks have fallen 10% or more. The underlying cause of the AI-stock slide has not been identified.
The details
The Nasdaq 100 lost approximately $4 trillion in market value over 25 days as AI stocks sold off. Meanwhile, the S&P 500 excluding AI stocks gained 8% in October and reached a record on October 30.
Timeline
- October 2026: AI stocks fell more than 13% while the S&P 500 excluding AI stocks rose 8%.
- October 30, 2026: The S&P 500 excluding AI stocks reached a record.
- Late October to around November 1, 2026: The Nasdaq 100 lost about $4 trillion in value over 25 days.
Market Dynamics
The split between the S&P 500 and its technology stocks extends a year in which index gains have leaned heavily on a handful of AI-linked megacaps. With those names now falling, the broader index is being held up by the rest of the market, which has gained as technology weakened.
Investors holding broad index funds may see steadier returns than those concentrated in technology, since the S&P 500 remains near its high while many tech names have fallen sharply. Reviewing sector exposure is a practical step for anyone with significant AI-stock holdings.
The takeaway
Broad index performance can conceal sharp declines in individual sectors, so checking how much of a portfolio depends on a few technology names is worthwhile. Diversification across sectors reduces the impact of a concentrated sell-off.
Further reading
For more on how index moves are shaping investor positions, see the Stock Markets section.
Source note: This article includes information reported by TokenPost.
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