Intel's Worst Day in 52 Years 📉

Welcome back to the Day Trading newsletter 📈

Tech's slide deepened Monday, with the Nasdaq-100 officially in a correction, as investors head into midterm election day with AMD earnings due tonight.

Let’s get into it 👇️ 

🛢️ Oil suffered its biggest one-day drop in months Monday as hopes grew for U.S.-Iran talks. U.S. crude fell more than 7% to settle near $96 a barrel and Brent dropped to near $105 after reports President Trump wants to give diplomacy with Tehran another try. Crude bounced Tuesday as an Iranian official said a deal is far off.

🔽 The Nasdaq-100 closed Monday more than 10% below its record high, officially a correction. The Nasdaq fell about 1% and the S&P 500 about 0.5%, while the Dow rose 0.41% to 51,983.98 as money rotated out of tech. Investors remain wary of Big Tech's AI spending and weak evidence of returns.

💰️ Marvell agreed to buy Lumentum in an all-stock deal worth about $115 billion, and both stocks tumbled. Lumentum holders get 4.5 Marvell shares each. Marvell fell about 13% and Lumentum almost 19% Monday, as investors questioned the price and the AI deal frenzy.

🍎 Apple posted record September-quarter revenue of $114.5 billion, up 12%, but warned memory costs will squeeze its holiday margins. It guided gross margin to 45% to 46%, below the 46.3% analysts expected, and the stock fell about 4% in premarket trading Tuesday after sliding 1.8% on Monday.

💵 Palantir's revenue nearly doubled, but the stock fell anyway. Third-quarter revenue rose 96% to $2.31 billion, beating estimates, and U.S. commercial sales topped U.S. government sales for the first time. The company raised its full-year forecast, but shares closed down 3.1% Monday and fell further premarket Tuesday.

🏭️ U.S. factory activity grew faster in October, with the ISM manufacturing index rising to 55.5 from 54.5. Anything above 50 means expansion, and this was the tenth straight month. The prices index eased to 75.2 from 77.9 but stays high, a reminder of why traders still see a December Fed rate hike as likely.

📊 Anthropic's amended IPO filing showed $33.2 billion in revenue for the first nine months of 2026. About $17 billion of that came in the third quarter, per CNBC. The filing also disclosed $895.4 billion in purchase commitments, mostly for computing power, as the AI lab prepares to go public.

🔐 Binance customers pulled more than $4.7 billion after the exchange reopened withdrawals following last week's $6.3 billion hack. Binance says that is about 3% of platform assets, and that $2.7 billion has flowed back in since Sunday. Bitcoin held near $77,000 Monday.

Intel stock fell nearly 29% on Friday, 10/30, its worst single day since 1974, wiping out well over $100 billion in market value.

The trigger was a fourth-quarter forecast of $15 billion to $16 billion in revenue and adjusted earnings of 25 cents a share, far below the roughly $17 billion and 43 cents Wall Street expected.

That landed a day after Intel beat expectations for the third quarter, with its data center and AI business growing 78% from a year ago to $7.3 billion.

Intel expects PC shipments to fall about 12% this year and another 10% in 2027, and said an incident at an Israel factory will cut roughly $300 million from fourth-quarter revenue.

The culprit is memory chips.

AI data centers are soaking up so much memory supply that prices have shot up, which makes laptops and desktops more expensive and cuts demand for the processors Intel sells.

This is not just an Intel problem. The Nasdaq fell 2.9% Friday as Nvidia, AMD, Arm and Qualcomm all fell, and Dell and HP dropped too.

The same squeeze hit Apple on Monday night: it guided its holiday-quarter profit margin to 45% to 46%, below the 46.3% analysts expected, and its stock fell nearly 4% in premarket trading Tuesday.

The bigger worry is that the AI boom that lifted chip stocks all year is now raising costs for everyone who isn't selling AI chips.

What to watch:

• AMD reports after the bell tonight, and its guidance will show whether the Friday rout was a one-off or a broader reset for chips.

• Nvidia reports on November 17.

• Beyond earnings, watch memory prices: Intel said the PC slump won't ease until memory supply and pricing normalize, and Apple expects memory costs to keep climbing.

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⚠️ Disclaimer: Not financial advice. Do your research before making any trades.