European stocks open lower and US futures point down as AI spending doubts weigh on Oracle, Apple and chip stocks, with US midterm voting under way.
European stocks have opened lower, with the main indices down sharply, and US index futures point to a weaker start on Wall Street as doubts about the return on artificial intelligence spending hit technology shares. Wall Street ended Monday with the S&P 500 down 0.51% and the Nasdaq Composite down 1.07%, led by Oracle and chip stocks, and the selling carried into Asia overnight. Markets are also trading on US midterm election day, with oil swinging on Iran headlines.
Asia Closes Mostly Lower
Asian markets were weaker as the tech selloff on Wall Street rolled through the region. South Korea’s Kospi fell roughly 3% and Taiwan’s Taiex nearly 2%, both markets with large chip and hardware makers, while Hong Kong’s Hang Seng was little changed. Japan was closed for a holiday. Australian shares were higher ahead of the Reserve Bank of Australia’s widely expected rate hike, after which the Australian dollar dipped. Indian shares extended overnight gains on softer oil and strong corporate earnings.
Europe Opens Lower
European stocks rose on Monday, helped by the drop in oil, so this morning’s slide is a sharp reversal. Tech and chip-related shares are the ones to watch as trading gets under way, along with energy stocks after the recent swings in crude.
AI Spending Worries Hit Oracle, Apple and Chips
Oracle fell almost 9% on Monday after announcing plans to raise $20 billion through debt and equity, which put fresh attention on how the AI buildout is being paid for. We looked at why the risk keeps growing in our analysis of AI spending and the stock market. The chip sector fell hard as well, with Marvell, Intel and Lumentum among the biggest decliners, and the Nasdaq 100 slipped into a correction, more than 10% below its peak. Meta and Palantir were also under pressure.
Apple reported after the close. Its holiday-quarter revenue forecast beat analyst estimates, but investors focused on margin pressure, rising memory chip costs and slower growth in China, and the shares fell about 3% in after-hours trading.
Oil and Iran
Oil fell more than 7% on Monday on hopes of a US-Iran breakthrough, its biggest one-day drop in over three months, and has swung between small gains and losses since. It edged higher overnight after reports of a US strike on Iran’s Qeshm Island, a reminder that the diplomatic track is fragile. The earlier plunge has weighed on energy shares, with Chevron and ExxonMobil retreating from 52-week highs despite recent earnings beats.
Midterms and Crypto
US voters go to the polls today in the midterm elections, and the dollar is drifting on Middle East and election risks. In crypto, Binance is executing a second withdrawal phase after a record $6.3 billion hack, according to reports. North Korea has denied involvement and blamed the US, while South Korea has urged exchanges to strengthen cold storage security. Separately, New Jersey has dropped a staking order against Coinbase as crypto faces its midterm regulatory test, a sign that enforcement may be shifting at state level.
What to watch
- How far European indices fall during the session, and whether tech and chip shares lead the decline.
- Whether the AI-related selling spreads from Oracle and chipmakers to other large tech names.
- Oil and any new headlines on US-Iran talks.
- US midterm results as they come in tonight, and any market reaction.
This article was generated automatically from our Daily Market Brief (European Session Brief, November 3, 2026, 06:12 GMT) and updated by our editors with Asian and European market moves. It is for information only and is not investment advice.