Nasdaq falls 1.1% as Marvell, Lumentum and Oracle slide, while the Dow rises and oil drops 7.7% to $96
The S&P 500 lost 0.5% to 7,541.40 on a second straight tech selloff, even as crude's biggest one-day drop in weeks cut energy stocks 4% and the 10-year yield eased to 4.91%.
Wall Street split in two on Monday. Technology stocks fell for a second day, dragging the Nasdaq Composite down 272.68 points, or 1.07%, to 25,164.32. The S&P 500 lost 38.67 points, or 0.51%, to 7,541.40. The Dow Jones Industrial Average went the other way, gaining 213.67 points, or 0.41%, to 51,983.98. The Russell 2000 slipped 0.21% to 2,805.88.
The closing numbers
| Measure | Close | Change |
|---|---|---|
| S&P 500 | 7,541.40 | -0.51% |
| Nasdaq Composite | 25,164.32 | -1.07% |
| Dow Jones Industrial Average | 51,983.98 | +0.41% |
| Russell 2000 | 2,805.88 | -0.21% |
| VIX | 21.15 | +8.91% |
| WTI crude (front month) | $96.07 | -7.73% |
| Gold (front month) | $3,956.20 | +1.47% |
| 10-year Treasury yield | 4.91% | -3 bp |
Closing prices from Yahoo Finance, read at 4:36 PM ET; percentage changes are our arithmetic against Friday's close. The yield is the Treasury's daily par yield: 4.91% against 4.94% Friday. Oil and gold are futures and can differ slightly from other feeds.
The Nasdaq Composite closed 8.8% below its Oct. 6 peak in our chart data. Friday's rout, covered in our Intel report, was not repaired by Monday's early futures bounce; the gains faded and the session ended lower.
Where the damage was
The tech sector ETF XLK fell 2.95% to $174.22. The deepest cuts were in the two names tied to Monday's biggest deals.
| Stock | Close | Change |
|---|---|---|
| Lumentum (LITE) | $684.40 | -18.59% |
| Marvell (MRVL) | $171.41 | -12.72% |
| Oracle (ORCL) | $119.22 | -8.76% |
| Palantir (PLTR) | $178.34 | -3.13% |
| Microsoft (MSFT) | $507.12 | -2.83% |
| Apple (AAPL) | $338.32 | -1.83% |
| Nvidia (NVDA) | $202.06 | -1.26% |
Marvell agreed to buy Lumentum for 4.5 of its own shares apiece, a deal the companies put at $115 billion. As we showed in our deal story, an all-stock offer shrinks when the buyer's shares fall, and Marvell lost nearly 13% on the day. At Monday's closing prices, 4.5 Marvell shares are worth about $771 (4.5 x $171.41), against the $1,132 headline figure the companies set on Oct. 28 prices. Lumentum, at $684.40, trades about 11% below that $771 offer value, a gap that suggests investors doubt the deal closes as planned. Closing is not expected until the first half of 2028.
Oracle's drop came with the paperwork for a $20 billion raise: $10 billion of new stock and $10 billion of bonds, detailed in our Oracle story. The stock sale alone adds roughly 2.5% to the share count at Friday's price, which is the dilution arithmetic investors were reacting to. Oracle's shares were down about 5.5% by mid-morning and ended down 8.76%.
The oil drop that did not lift the market
Normally a $8 fall in crude helps stocks by easing inflation worries. Not this time. WTI settled at $96.07, down $8.05 from Friday's $104.12, after reports that a draft proposal to end the U.S.-Iran war is circulating (see what it means for fuel buyers). That is a hope, not a deal, and Iran has said no final agreement can happen while the U.S. naval blockade continues.
The energy ETF XLE fell 3.96% to $67.25, so the oil producers in the index paid for the peace hopes. We did not identify a single driver for the Dow's gain and will not guess at one. Gold rose 1.47% to $3,956.20, recovering part of Friday's slide to a one-year low, while the VIX climbed to 21.15, its highest close in the three sessions we checked.
Strong factory data, the wrong kind of good news
The Institute for Supply Management's October report showed the Manufacturing PMI rising to 55.5%, with production at a five-year high. In this market, strength is awkward: the same report's Prices Index was 75.2%, meaning factory buyers are still paying more for raw materials. We covered it in our ISM story. The 2-year Treasury yield rose to 4.59% from 4.56% even as the 10-year eased, which tells you traders are not pricing relief on rates. We read that as our interpretation of the Treasury figures, not a statement from the Fed.
Who it hits
For an owner with a floating-rate line of credit, Monday did not change anything: the short end of the curve, which drives prime-linked borrowing costs, moved up slightly. For a trucking company or a delivery fleet, the oil drop is worth watching but has not reached the pump; the next EIA diesel reading is Tuesday. For anyone holding Oracle, Marvell or Lumentum through a 401(k) tech fund, the lesson is how much of the Nasdaq's index weight sits in a handful of AI-linked names that all moved on financing news in the same session.
What to watch
Tuesday brings JOLTS job openings (forecast 7.125 million) and the midterm elections. ADP and ISM services follow Wednesday, jobless claims Thursday, and the October jobs report Friday with a payroll forecast of 65,000 on our markets board. CPI is Nov. 10.
Sources: Yahoo Finance; U.S. Treasury; Institute for Supply Management; Chronicle economic calendar and earlier reports. This is market information, not investment advice.
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