2026-11-02 · By SEPT AI
*By SEPT AI*
U.S. equities closed broadly lower on Monday, with a sharp selloff in technology and growth names dragging the major averages down and pushing investor sentiment into "fear" territory. The session's tone was set early by weakness in megacap tech, and while blue-chip industrials held up comparatively well, the damage beneath the surface was considerably worse than the headline index moves suggested.
The SPDR S&P 500 ETF Trust (SPY) closed at $752.10, down 0.97%, after trading in a range between $751.60 and $763.86. The Invesco QQQ Trust (QQQ), which tracks the Nasdaq-100, was the day's clear laggard, tumbling 2.05% to close at $681.04 — just above its intraday low of $680.33. The SPDR Dow Jones Industrial Average ETF Trust (DIA) fared best among the majors, slipping a modest 0.30% to $519.34, while the iShares Russell 2000 ETF (IWM) shed 0.89% to close at $279.14.
The divergence between the Dow and the Nasdaq was stark and told the story of the session: investors rotated away from high-multiple growth stocks while finding relative comfort in value-oriented, industrial-heavy names. The Fear & Greed Index settled at 37, firmly in "fear" territory, reflecting the cautious mood that prevailed through the close.
The sector picture was defined largely by the growth-versus-value split. Industrials and traditional manufacturing names found support from a wave of upbeat corporate guidance and earnings beats. Allison Transmission lifted its full-year 2026 sales outlook to a range of $5.975 billion to $6.075 billion, up from a prior range of $5.800 billion to $6.000 billion, with the new midpoint sitting above the $5.933 billion consensus estimate. Commercial Vehicle Group similarly raised its full-year 2026 sales guidance to $755 million to $775 million from $725 million to $755 million, comfortably ahead of the $736.588 million analyst estimate.
Energy names were mixed but produced several notable beats. California Resources posted third-quarter adjusted profit of $1.17 per share, topping the $0.96 consensus, while revenue of $1.096 billion exceeded the $961.333 million estimate. Crescent Energy reported adjusted earnings of $0.77 per share against a $0.61 estimate, with revenue of $1.351 billion beating the $1.230 billion forecast. Viper Energy also delivered a beat, posting profit of $0.72 per share versus a $0.62 consensus.
The technology and speculative growth complex, by contrast, was hit hard. The day's biggest decliners were concentrated in smaller-cap and speculative names, a pattern consistent with the broader risk-off tone.
The single largest gainer on the day was VCIG, which surged 140.71% to close at $8.16 on volume of roughly 4.4 million shares. SEGG climbed 45.11% to $1.93 on heavy volume of more than 31.7 million shares, while IFBD rose 34.85% to $1.03. AXTQ gained 29.48% to $42.38, LITZ advanced 26.11% to $35.79, and AAOZ added 23.41% to $24.41.
On the downside, XMAX fell 38.40% to $4.01, AIOK dropped 33.87% to $12.63, and LITX slid 31.13% to $14.58. AXTX lost 28.96% to close at $11.31, AXTL declined 28.29% to $1.09, and CMPS dropped 28.18% to $8.41 on volume of nearly 16.7 million shares. SGML fell 27.25% to $5.21, XLAB lost 26.62% to $2.04, and AAOX declined 23.62% to $3.04 on volume exceeding 30 million shares. OFRM, ASTX, LABX, MVLL, and CIEG also posted declines of more than 21%.
Key Earnings
The earnings calendar was busy, with several high-profile reports shaping individual names.
Apple topped Wall Street targets, posting per-share earnings of $2.10 against a $1.98 consensus, with revenue of $114.477 billion exceeding the $113.392 billion estimate. Palantir also beat on both profit and revenue and raised its guidance, describing the quarter in unusually strong terms.
Inspire Medical Systems reported adjusted per-share profit of $0.14, ahead of the $0.09 consensus, with revenue of $206.695 million topping the $204.304 million estimate. Cabot posted fourth-quarter adjusted earnings of $1.61 per share, beating the $1.55 consensus, on revenue of $1.009 billion that far exceeded the $927.344 million forecast.
MSA Safety reported third-quarter adjusted earnings per share of $2.09, matching expectations, with revenue of $536.43 million above the $528.986 million estimate. HealthStream posted profit of $0.18 per share against a $0.16 consensus. UMH Properties reported funds from operations of $0.26 per share, in line with estimates, while revenue of $74.135 million topped the $68.369 million consensus. Greenlight Capital Re swung to a profit of $0.10 per share versus a $0.13 loss a year earlier.
Several companies disappointed. Alamo Group reported adjusted earnings of $2.06 per share and sales of $403.137 million, both well below estimates of $2.62 and $437.168 million. Boise Cascade posted earnings of $1.04 per share, missing the $1.14 view, though revenue of $1.802 billion topped the $1.760 billion estimate. Vornado Realty's funds from operations came in at $0.62 per share, under the $0.64 consensus. Pershing Square reported adjusted profit of $0.12 per share, below the $0.13 estimate, with revenue of $56.604 million falling well short of the $76.675 million projection. Pampa Energia's profit of $2.40 per share missed the $2.44 forecast.
Offerpad Solutions guided fourth-quarter revenue to $100 million to $120 million, below the $141.5 million estimate. Atlas Energy Solutions posted a wider quarterly loss of $0.36 per share versus the expected $0.23 loss, though revenue topped forecasts. Voyager Technologies reported a wider adjusted loss of $0.87 per share, larger than the $0.85 forecast, but revenue of $88.715 million beat estimates.
Other Corporate Developments
Broadwind announced it will acquire MCM, a maker of power transmission components, for $18 million, with a potential earnout of up to $7 million. Recursion reported that its drug REC-4881 reduced total polyp burden by a median 47% after 12 weeks in a Phase 2 trial of 15 patients with familial adenomatous polyposis. Voya Financial raised its quarterly dividend to $0.57 per share from $0.47 and added $500 million to its existing share repurchase program.
Among notable institutional and insider positioning, several names have drawn sustained buying interest. Republic Services has seen 95 insider buys totaling approximately $1.24 billion, while Taiwan Semiconductor has recorded 76 insider buys worth roughly $852,361. MercadoLibre has seen three insider buys totaling $1.2 million, and Loews has drawn a single buy of $523,700. FBK, GBCI, and NHI have also registered insider buying activity in recent months.
Investors will continue to digest the heavy slate of earnings, with particular attention on whether the technology weakness that defined Monday's session extends into the coming days. The Fear & Greed Index at 37 suggests sentiment remains fragile, and the sharp divergence between the Dow and Nasdaq leaves open the question of whether the rotation into value names will persist or whether growth stocks can stabilize. With Apple and Palantir both delivering strong results, the market's ability to look past the day's selling pressure may hinge on whether upcoming reports reinforce the earnings strength seen in Monday's batch.
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