By Boluwatife Oshadiya | November 2, 2026
Key Points
- Nasdaq lost 2.86% last week as the S&P 500 and Dow Jones also declined amid technology-sector weakness
- European markets delivered mixed performances, while Hong Kong and Japan traded higher on Monday
- South Africa’s JSE is positioned for a firmer open despite Friday’s sharp losses in resource and precious-metal stocks
Main Story
US equity markets came under pressure last week as disappointing technology earnings and concerns over artificial intelligence spending triggered a sell-off in technology and semiconductor stocks.
The Nasdaq fell 2.86%, while the S&P 500 declined 1.82% and the Dow Jones lost 1.09%, according to the market figures supplied. The technology-led decline reflected investor concerns about whether substantial AI investments will translate into sustainable profitability.
The stockbroking and portfolio management subsidiary of First National Bank (FNB) identified AI-related concerns as the dominant cross-market theme in a brief published on Monday. It said disappointing technology earnings had intensified Friday’s US market sell-off.
European equities showed mixed performance. The FTSE 100 gained 0.07% over the week, while the Euro Stoxx 50 declined 1.22%, despite concerns about sovereign debt sustainability.
In Asia on Monday, the Hang Seng Index rose 0.61%, supported by technology shares, while the Nikkei 225 advanced 0.44%. Australia’s ASX 200 closed 0.58% lower as weakness in technology, mining and healthcare stocks outweighed gains in banking shares.
South Africa’s JSE was expected to open higher, supported by firmer global futures and a recovery across most Asian markets. However, the exchange had ended Friday sharply lower, with the All Share Index falling 2.20% and the Top 40 declining 2.42% — their worst single-day performances since June.
Resource stocks led Friday’s losses, falling 5.12%, while precious-metal shares declined 6.19%. Financials lost 1.95%, while industrial stocks recorded comparatively modest declines. The sell-off followed a fall in gold prices below $3,900 per ounce, as rising oil prices heightened inflation concerns.
What’s Being Said
FNB’s stockbroking and portfolio management subsidiary identified AI investment and profitability concerns as the principal drivers of market sentiment in its Monday brief. However, the supplied material contains no direct quotation from the firm.
The source material also does not include a direct comment from a US technology company or an independent market analyst. Such responses would be needed to provide additional perspectives on the earnings-driven sell-off.
What’s Next
- Major US technology earnings reports will provide further evidence of whether AI spending is translating into earnings growth.
- US employment data and ISM surveys are among the key economic releases expected to influence market sentiment.
- The US midterm elections are scheduled for November 3, while the Reserve Bank of Australia is expected to consider an interest-rate increase on Tuesday.
The Bottom Line:
The divergence between technology-led weakness in the US and more resilient trading in parts of Europe and Asia shows how concerns about AI valuations are influencing global risk appetite. Investors will be looking for earnings and economic data to establish whether the recent sell-off reflects temporary uncertainty or a broader reassessment of technology-sector valuations.
