Tech Stock Slump Hits Three-Quarters of Sector

Index investors may see account swings tied to a small group of AI stocks even as most of the S&P 500 holds up.

Updated on Nov. 1, 2026 in Stock Markets

Tech Stock Slump Hits Three-Quarters of Sector

Live Poll

Do you feel confident your investments are safe given recent tech stock losses?

Three-quarters of technology stocks have fallen into bear-market territory, while the S&P 500 remains 3.5% below its record high. Stock-market losses have been concentrated in AI-linked companies.

Why it matters

Broad declines in technology shares can affect households holding index funds, retirement accounts, and other equity investments. The gap between AI stocks and the rest of the S&P 500 shows how concentrated the recent swings have been.

Roughly 75% of technology stocks are in bear-market territory, while the S&P 500 sits 3.5% below its record. The Nasdaq 100 lost approximately $4 trillion in market value over 25 days.

The players

S&P 500

A broad index of large U.S. companies that many retirement and index-fund investments track.

Nasdaq 100

An index of the largest non-financial companies listed on the Nasdaq, heavily weighted toward technology shares.

The details

AI stocks fell more than 13% in October while the rest of the S&P 500 rose, with the S&P 500 excluding AI stocks gaining 8% and reaching a record on October 30. Losses were widespread across the index and the technology sector, with 58% of S&P 500 constituents at least 20% below their individual highs. Because the Nasdaq 100 is heavily weighted toward technology, its roughly $4 trillion decline weighed on broader sentiment even as much of the index held up.

October 2026: AI stocks fell 13% while the S&P 500 excluding AI stocks gained 8%.
October 30, 2026: The S&P 500 excluding AI stocks reached a record.
Late October to about November 1, 2026: The Nasdaq 100 lost about $4 trillion in value over 25 days.

Money Landscape

The index's 3.5% gap from its October 30 record is modest, but the divergence between AI stocks and the rest of the market is wider than the headline figure suggests. Households with broad equity exposure see the effect through this concentration in a small group of technology names.

Investors with retirement accounts or index funds tied to the S&P 500 may see account values move with the concentrated technology sell-off. Anyone reviewing an allocation should discuss it with a qualified financial professional rather than reacting to a single month's moves.

The takeaway

Market breadth matters: the S&P 500 looks close to its high, but most technology stocks are well below theirs. Track how the index recovers as AI-linked shares adjust, and review your equity exposure with a qualified financial professional if you are unsure how concentrated it is.