S&P 500, Nasdaq Drop As Capex Concerns Grip Tech Investors, Outweighing US-Iran Diplomacy Hope — ORCL, META, PLTR, AAPL In Focus

The U.S. midterm elections will be held on Tuesday.

• The S&P 500 ended Monday 0.5% lower, the Nasdaq 100 fell 1.4%, and the Dow Jones Industrial Average added 0.4%.
• Anthropic disclosed a twelve-fold increase in revenue for the September quarter in a new filing. 
• Oracle and Meta highlighted plans for additional fundraising for capex. 

The S&P 500 and Nasdaq ended lower on Monday, after investors moved out of the tech and AI play amid capex and valuation anxiety, while traders prepare for the midterm election.

The S&P 500 ended Monday 0.5% lower, the Nasdaq 100 fell 1.4%, and the Dow Jones Industrial Average added 0.4%. The Russell 2000, which tracks small-cap stocks, dropped 0.2%. 

The SPDR S&P 500 ETF (SPY) fell 0.5%, and the SPDR Dow Jones Industrial Average ETF (DIA) added 0.4%. Meanwhile, the Nasdaq-100 tracking Invesco QQQ Trust (QQQ) ended 1.4% lower on Monday.  

Meanwhile, the VanEck Semiconductor ETF (SMH) and the iShares Semiconductor ETF dropped between 2.7% and 3.7% each on Monday amid weakness in Nvidia (NVDA), AMD, Micron Tech (MU) and Broadcom (AVGO). The broader Vanguard Information Technology ETF (VGT) fell 4%.

Retail sentiment on Stocktwits for SPY improved to ‘bullish’ from ‘neutral’, while it remained in ‘bearish’ territory for DIA and QQQ.

US Market Drivers

Index	Move	Close
Dow Jones Industrial Average	0.4%	51,983.98
S&P 500	-0.5%	7,541.40
Nasdaq 100	-1.4%	27,989.82

Crude prices dropped following optimism regarding potential U.S.-Iran diplomatic discussions. Secretary of State Marco Rubio noted over the weekend that President Donald Trump has yet to decide on military action against Tehran, emphasizing a preference for a peaceful resolution. Concurrently, Iranian state outlets cited their foreign minister stating a deal remains achievable provided Washington shows goodwill.

Brent crude tumbled 7.63% to close at $104.77 per barrel. U.S. West Texas Intermediate futures

also pulled back 7.36% to settle at $96.46 per barrel. 

“It’s going to be an extremely interesting week in the markets,” Matt Maley at Miller Tabak told Bloomberg. “We’ll have political issues to decipher as well as geopolitical ones.”

Meanwhile, mounting skepticism surrounding artificial intelligence capex returns is weighing on tech stocks, with hyperscalers increasing their debt burdens to fund the rapid pace of the AI buildout. 

Oracle (ORCL) and Meta Platforms (META), both firms, were in the news during the session for fundraising. Oracle (ORCL) is offering $10 billion in debt alongside an equivalent stock sale on Monday, whereas Meta Platforms (META) is considering raising $20 billion through a multi-currency bond issuance.

Key Trending Stocks

Palantir Technologies Inc. (PLTR) reported third-quarter earnings that comfortably beat consensus expectations; however, concerns around stock valuations dented investor sentiment. 

Apple (AAPL)  reported fourth-quarter revenue that outpaced average analyst forecasts; however, its Q1 outlook failed to impress investors.  

CrowdStrike Holdings Inc.(CRWD) share price is set to gain further even after doubling its value so far this year, Deutsche Bank said on Monday, amid a surge in cybersecurity demand.  

Shares of AST SpaceMobile (ASTS) dived 11% on Monday on competition concerns following reports that SpaceX is in talks with EchoStar about buying Boost Mobile to gain access to its network. 

Gary Black, Managing Partner at The Future Fund, on Monday urged Tesla (TSLA) investors to moderate their enthusiasm for a potential merger with SpaceX (SPCX), citing the market reaction to Marvell Technology’s recently announced acquisition of Lumentum Holdings as an example. 

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