The Nasdaq Composite fell 2.6% on Thursday, 22 October 2026, closing at 26,008.86 in its worst session since June. The broader S&P 500 slipped about 1.2% to 7,663.43, its steepest one-day drop since July. The slide left the Nasdaq about 5.8% below the record it set on 6 October.
What set off the selling? Meta's quarterly report. The company disclosed $825 billion in leases and other non-cancellable commitments tied to its AI build-out, up from $700 billion it reported in July. It also posted negative free cash flow of about $2.1 billion for the quarter, compared with $10.6 billion of positive cash flow in the same quarter last year, and lifted its 2026 capital spending forecast to between $135 billion and $145 billion. Its shares sank close to 7%.
Why did chipmakers suffer most? Doubts over how much the AI spending race will cost, and when it will pay off, spread to the companies supplying it. The Philadelphia Semiconductor Index dropped 6.7%, with AMD down 8.1%, Micron 6.3% and Nvidia 4.4%. Among the seven largest US tech names, Amazon lost 4.6%, Alphabet 3.1% and Microsoft 2.2%, while Apple was the only one to finish higher, up 1.2%.
Bonds moved the other way. The yield on the 10-year Treasury note fell to around 4.97%, dipping below 5% for the first time in roughly a month, even as Brent crude climbed 4% the same day to settle at $113.17, its highest level since May.
What comes next? The Federal Reserve's policy committee meets on 27 and 28 October, with its interest rate decision due on Wednesday, 28 October.
