The Nasdaq Composite fell 5.3% over the past month, from 26,861 on September 30 to 25,437 on October 30, and is up 9.4% year to date.

Technically, the picture has weakened. The RSI has dropped to 35, nearing oversold but not there yet. The index closed below its 50-day EMA and 100-day EMA and is now sitting just above the 200-day EMA at 25,213. That 200-day is the line I am watching. The October low near 25,177 is right on top of it, so a hold here would set up a base, while a decisive break would open the door to a deeper correction.

October was a tale of two halves. The Nasdaq ran to fresh records in the first week, then spent the rest of the month giving it all back and then some as chip stocks, AI spending worries, and inflation all hit at once.

Softer jobs data early in the month eased rate-hike fears, and an AI chip rally pushed the Composite to a record close on October 6. That happened even with the 10-year Treasury yield at 5.31%, its highest close since 2002.

Then the tape turned. A hot September CPI report on October 14 (headline inflation +0.6% for the month and 3.7% from a year ago, driven by gasoline) landed amid a chip rout, and the Composite fell 1.9% that day. The Nasdaq-100 had its worst week in 18 months, and Nvidia shed roughly $200 billion in value after OpenAI’s revenue run-rate came in about $18 billion below expectations.

Bonds caught a safety bid, and the 10-year slipped back under 5% on October 22. The Fed held rates on October 28, and the month closed with a 2.9% one-day drop on October 30, pushing the Nasdaq-100 into its third correction of 2026. From the October 6 record close, the Composite finished the month down about 7.8%.

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This is a correction, not a collapse. The Nasdaq is down 5.3% for the month and about 8% from its record, but still up 9.4% for the year. What stands out is that the selling happened while the 10-year yield fell from 5.29% to 4.93%, so this was about AI spending and chip valuations rather than rates. For investors, I think that argues for patience over panic: watch whether the index can hold its 200-day EMA around 25,200, keep some cash ready for better entries, and favor companies whose earnings estimates are still rising rather than trying to catch the hardest-hit momentum names.