Technology stocks tumbled on Thursday, 22 October 2026, as worries about the cost of the artificial intelligence boom returned. The Nasdaq Composite fell 2.6%, its steepest drop since early June, while the S&P 500 had its worst day since July. The Dow Jones Industrial Average, which has fewer tech stocks, edged up, according to the Associated Press and Reuters.
How the markets closed
| Index | Close | Change |
|---|---|---|
| S&P 500 | 7,663.43 | −1.2% |
| Nasdaq Composite | 26,008.86 | −2.6% |
| Dow Jones | 52,867.98 | +11.89 points |
| Russell 2000 | 2,784.03 | +0.1% |
| Philadelphia Semiconductor Index | — | −6.7% |
What drove the sell-off
- Meta: shares fell about 7% even though revenue beat forecasts, as its plan to issue non-voting shares and its rising capital spending renewed concerns about AI costs, Reuters reported.
- Lam Research: the chip-equipment maker fell about 10% after warning of supply-chain constraints, and a downgrade of AI cloud provider CoreWeave added to the pressure.
- Tesla and SpaceX: Tesla fell 3.1% and SpaceX ended down 9%.
"Rotating out of techs, out of the AIs," was how Joe Saluzzi of Themis Trading described the moves, according to Reuters. Rick Meckler of Cherry Lane Investments said that if investors believe AI earnings are real, "they are buyers."
Defensive stocks and bonds gain
Most US stocks actually rose. Consumer staples and utilities led, Procter & Gamble gained about 5%, and Lockheed Martin and railroad CSX beat profit forecasts. The 10-year Treasury yield fell by about 17–19 basis points to roughly 4.95%, its biggest one-day drop since March 2023, as investors sought safety. It had been above 5.3% earlier in October.
Oil at a five-month high
Brent crude settled up 4% at $113.17 a barrel, its highest close since 4 May, while US crude settled at $99.47. Iranian state TV said seven tankers were damaged in the Strait of Hormuz, and Houthi forces attacked targets in Saudi Arabia, according to AP and Reuters. Read more in our report on US-Israel strike plans and the Hormuz tanker attacks.
Asia fell first
Earlier in the day, South Korea's Kospi fell 3.5%, Hong Kong's Hang Seng 3% and Japan's Nikkei 2.7%, according to AP.
What's next
Alphabet, Microsoft and Amazon report results next week, giving investors fresh signals on whether AI spending is paying off. For background on the debate, see our analysis Is AI a Bubble?
This article is for information only and is not investment advice.
