Nasdaq falls 2.6% amid doubts over AI spending — Channel NewsAsia
US stock indexes mostly declined on October 22, while the Nasdaq posted its biggest daily drop since early June. The technology index lost 2.6% amid a renewed wave of investor concerns over businesses’ large-scale spending on artificial intelligence, Channel NewsAsia reports.
The Nasdaq Composite fell by 694 points to 26,008.86 points. The S&P 500 lost 1.21%, or 93.74 points, ending trading at 7,663.43 points. Meanwhile, the Dow Jones Industrial Average added 0.02% to reach 52,867.98 points.
Chipmaker stock sell-off
The Philadelphia SE Semiconductor Index fell 6.7%, marking its biggest one-day decline since June 23. Shares of Intel, AMD, Sandisk and Marvell each dropped by more than 8%. From its record closing level recorded on June 22, the SOX index has fallen by more than 26%, although it is still up 51.5% since the beginning of the year.
Meta Platforms shares lost 7%, despite quarterly results that exceeded analysts’ expectations. The company reported its first cash outflow in more than a decade due to AI-related spending, as well as plans to issue non-voting shares at a two-for-one ratio to raise capital for the development of this technology.
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Tesla shares fell 3.1%, although the electric vehicle maker unexpectedly reported positive free cash flow for the quarter and reduced its capital expenditure plan for 2026.
Other trading factors
According to LSEG, of the 111 S&P 500 companies that have already released third-quarter earnings, 83% beat analysts’ estimates. Against this backdrop, shares of individual companies rose: Blackstone by 8.4%, Lockheed Martin by 7%, Spotify by 11.1%, and Procter & Gamble by 5.6%.
Investors also watched oil prices rise to a five-month high following new strikes by Iran-backed Yemeni Houthis on targets in Saudi Arabia. Markets feared that tensions in the Middle East could sustain inflation and affect the US Federal Reserve’s further decisions on interest rates.
