Tech Stocks Bounce After Brutal October

Tech stocks recovered ground on Monday after a severe sell-off ended a difficult month for the sector.

Intel shares fell nearly 30% on Friday. The decline followed reports that the company missed earnings expectations and burned through significant cash reserves.

The Nasdaq recorded its steepest daily drop since June. The Nasdaq 100 index suffered its worst monthly performance in more than a year. The S&P 500 tech index posted its weakest month since early 2025. The communications sector index saw its largest monthly drop in four years.

Investors turned their attention to Apple, which is scheduled to report earnings later on Monday. The company has largely avoided the recent frenzy surrounding hyperscalers. Analysts will focus on core product sales, profit margins, and the impact of rising chip prices.

Nasdaq futures rebounded by just under 1% in early Monday trading. Asian markets showed mixed results. Oil prices eased slightly from their recent surge.

Several factors contributed to the recent tech retreat. Concerns included rising capital costs, stress in high-risk credit markets, and pushback against data center expansion plans. Shifting political dynamics also played a role.

A major hack of the Binance cryptocurrency exchange added to the pressure. The incident occurred late last week. The exchange reported that it had covered most of the $6.3 billion in stolen funds by Sunday. Customer withdrawals have increased since the event.

Tuesday's US midterm elections now dominate market thinking. Polls and betting markets suggest Democrats are on track to win both chambers. The Senate race remains close and may go down to the final day of voting.

Energy markets are watching for potential new actions by President Trump against Iran. Oil prices slipped to about $109 on Monday amid ongoing mediation efforts.

Bond markets are reacting more to the equity decline than to high oil prices. Several Federal Reserve officials indicated late last week that another interest rate hike is likely by the end of the year.

Analysts project Apple will report a nearly 11% increase in revenue to $113 billion for its fiscal fourth quarter. Net profit is expected to rise about 6% to $29 billion. iPhone sales are projected to climb 15% to $56.5 billion. This growth rate is lower than the 22% increase seen in the previous three months.

The quarter includes only nine days of sales for the new iPhone 18 Pro models. The iPhone Duo, the company's first foldable phone, launched on October 23. Investors will focus on guidance for the upcoming holiday quarter.