2. Has a Correction in Tech Stocks Begun? What Message Do the Dow Jones and Nasdaq Send to Investors?

2. Has a Correction in Tech Stocks Begun? What Message Do the Dow Jones and Nasdaq Send to Investors? U.S. stocks closed Monday, October 12, 2026, in a session where divergent performance of major indices revealed a shift in investor preferences. While the Dow Jones rose on support from value-driven companies, pressure on technology and semiconductor stocks pushed the Nasdaq into negative territory. Meanwhile, expectations

The US stock market ended its work on Monday, October 12, 2026, in a situation where the difference in the performance of the main indices revealed the change in investors' preferences. While the Dow Jones index rose with the support of value-oriented stocks, pressure on technology stocks and semiconductors dragged the Nasdaq index into negative territory. At the same time, waiting for the financial report of major banks, inflation data and oil market developments made the trading environment more cautious.

The Dow Jones index reached 51,851 points with an increase of 0.38%.

The Nasdaq index fell by 0.44% and reached 27,246 points.

SanDisk's more than 6% drop and Lumentum's nearly 10% drop intensified the pressure on artificial intelligence-related stocks.

Investors were more cautious on the eve of the banks' report and the release of inflation data.

At the end of trading, the Dow Jones industrial index reached 51,851 points with an increase of 0.38%. On the other hand, the broad S&P 500 index was placed at the level of 7,807.24 units with a decrease of 0.06%. The Nasdaq index also fell by 0.44% and reached 27,246 points due to the weakness of technology stocks.

This divergence shows that the market growth was not widespread that day. Some investors leaned toward value stocks and more defensive sectors, while concerns about the valuation of technology companies, particularly those in the artificial intelligence supply chain, weighed on trading.

Gold, treasury bonds and industrial performance

The price of gold at the end of trading in the US market decreased by 0.64% to $4,167.56 per ounce. At the same time, the yield of ten-year US Treasury bonds increased by 0.01% to 5.24%; A level that can be important for risky assets and stocks of growth-oriented companies. Of course, the stock market was closed on this day and this figure should be interpreted according to the trading conditions and the time of data recording.

Among industries, communications services and defense consumer goods outperformed, while technology was one of the weakest sectors of the market. This shift could be a sign of increased investor caution towards stocks that have a significant portion of their value dependent on future profitability growth.

Salesforce shares rose after an analyst upgraded their opinion. The shares of Figs Company also increased by more than 12% and its growth in the last five trading days exceeded 30%.

On the other hand, SanDisk shares fell by more than 6%; Concerns about competition in the memory market were one of the pressure factors on this share. The shares of Lumentum Holdings also fell by nearly 10% and lost their growth last week. The shares of Marvel Technology and Semtech companies fell by 3.42 and 10.15%, respectively; A sign of continued market sensitivity to semiconductor company valuations.

Meanwhile, Meta shares rose after the company announced its new AI model, Mouse Wonder. This reaction shows that the market differentiates between technology companies and continues to pay attention to their product developments and competitive power.

"In my opinion, the most important message of this report is not the decline of the Nasdaq, but the revelation of the gap between the expectations of investors and the real capacity of companies to turn the wave of artificial intelligence into sustainable income and profit. The rapid growth of some stocks, along with the sharp decline of companies active in the semiconductor chain, shows that the market no longer simply reacts to the narrative of technology growth; Rather, it measures the pricing, intensity of competition and profitability prospects more accurately. In such an atmosphere, the growth of the Dow Jones should not be seen as a sign of confidence returning. The determining criterion will be the quality of financial reports and the market's reaction to inflationary data; Factors that will determine whether the correction in tech stocks is an opportunity for gradual entry or a prelude to a deeper correction in valuations."

The importance of the week ahead for investors

As of October 12, four years have passed since the beginning of the upward period mentioned in the report; The S&P 500 index has grown by more than 120% compared to October 12, 2022. However, the continuation of this process will depend on new factors.

Financial reports from major banks, inflation data, and oil price developments can change market expectations about corporate profits, interest rates, and the cost of financing. The possibility of continued high interest rates could weigh on the valuation of growth stocks, especially if inflation data shows sustained price pressures.

October 12 trading showed that the US stock market has entered a stage where choosing between industries and companies becomes more important. The growth of the Dow Jones, along with the decline of the Nasdaq, the weakness of semiconductor stocks and the better performance of some defense industries, indicates an increase in investors' caution. However, one trading day is not enough to confirm a long-term trend change and the next direction of the market will depend on the financial results of the companies and the economic data ahead.

Artificial intelligence has been used to translate some parts of this report.