PomegraNasdaq Falls 2.6% as AI Spending Worries Hit Tech
Why did the Nasdaq fall 2.6%?
Nasdaq Composite (^IXIC) fell 2.6% to 26,008.86 on Thursday, its worst day since June, after worries about AI spending and higher oil prices hit tech stocks.
Key numbers
| Nasdaq Composite | 26,008.86-2.60% |
|---|---|
| S&P 500 | 7,663.43-1.21% |
| Philadelphia Semiconductor Index | -6.7%biggest drop since June 23 |
| Meta shares | about -7%after Q3 results |
| Nvidia shares | $212.21-4.40% |
| Brent crude (midday) | $112.33+3.2% |
What happened
Nasdaq Composite (^IXIC) fell 2.6% to 26,008.86 on Thursday, its worst day since June, after worries about AI spending and higher oil prices hit tech stocks. The S&P 500, a broad measure of large U.S. companies, lost 1.21% to 7,663.43, its worst day since July. The Dow was nearly flat. Meta fell about 7% as investors focused on its $135–145 billion AI spending plan for 2026. An index of chipmakers dropped 6.7%. Oil hit a five-month high near $112 a barrel after Houthi attacks on Saudi Arabia.
Why it matters
The Nasdaq's drop shows investors are getting nervous about how much money big tech companies are spending on artificial intelligence (AI) and how they will pay for it. Rising borrowing costs for data centers and AI chips helped trigger the selling. Many retirement and index funds hold these big tech stocks, so a sharp fall can lower account values even when most other stocks are steady.
Who this affects
- MarketbearishMedium impact
- Tech investors lost ground while the Dow stayed flat.
- CompanybearishMedium impact
- Meta shareholders lost about 7% despite strong sales growth.
- CompetitorsbearishHigh impact
- Chipmakers such as Nvidia and AMD fell harder than the market.
- IndustrybearishMedium impact
- AI builders face tougher questions about costs and borrowing.
Nasdaq Composite vs S&P 500, Dow Jones
| Nasdaq Composite^IXIC | 26,008.86 | -2.60% | June |
|---|---|---|---|
| S&P 500^GSPC | 7,663.43 | -1.21% | July |
| Dow Jones Industrial Average^DJI | 52,867.98 | +0.02% | — |
As of 2026-10-22
How we got here
Meta reports Q3 sales up 26% to $64.6B and narrows 2026 AI spending range.
Houthis strike targets in Saudi Arabia, including an airport and an oil field (per).
Brent crude climbs above $112, its highest since May.
Nasdaq closes down 2.60% and S&P 500 down 1.21%.
What to watch
- Whether chip stocks steady after the semiconductor index's 6.7% drop2026-10-23
- Whether Brent holds near $112 amid Houthi attacks on Saudi Arabia2026-10-23
- Reports of possible U.S.-Israel strikes on Iran after the midterm elections (per)2026-11-03
Educational content only. Not investment advice.
More briefsAll briefs →
Moderna Stock Falls 25% After Melanoma Vaccine Data Leak
Moderna (MRNA) fell as Merck slipped up to 3.9% after leaked data showed a 42% lower melanoma relapse risk.
Applied Materials Stock Falls 6% After Lam Research Guidance
Applied Materials (AMAT) and KLA slid as Lam Research (LRCX) fell 9% on supply limits and AI spending doubts
Dow Stock Rises 2.9% After Q3 Earnings Beat
Dow (DOW) forecast Q4 core profit of $1.54B versus $1.38B expected, with its 4,500 job cuts 70% done