Nasdaq falls 2.6% in worst day since June as Meta sinks 7% on AI spending
Wall Street's tech-heavy Nasdaq lost 2.6% on Thursday, its worst session since June, as fears over AI spending, a Meta sell-off and oil near $113 hit chip and cloud stocks; the Dow ended flat.
At a glance
- The Nasdaq Composite fell about 2.6% to around 26,009 on Thursday, October 22, 2026, its biggest one-day drop since early June.
- The S&P 500 lost 1.2% to 7,663.43, its worst day since July, while the Dow Jones ended almost unchanged at 52,867.98.
- Meta shares dropped about 7% after the company raised its AI spending plans and reported its first cash outflow in more than a decade; CoreWeave fell about 10%.
- Moderna plunged around 17–20% after results of a cancer vaccine study leaked early on social media.
- Brent crude touched about $113 a barrel, its highest since May, on Gulf attacks and reports of possible new strikes on Iran after the US midterms.
The Nasdaq Composite fell about 2.6% on Thursday, October 22, 2026, its worst day since early June, as investors dumped technology shares over the cost of the artificial intelligence boom. A 7% slide in Meta after its earnings, sharp falls in chip and cloud stocks and oil climbing to its highest price since May pulled the S&P 500 down 1.2%, while the blue-chip Dow Jones ended flat.
How the markets closed
Selling hit almost every corner of the tech sector, reversing a rebound the day before. Investors moved into government bonds, pushing US Treasury yields lower.
| Index / asset | Close, Thursday Oct 22 | Change |
|---|---|---|
| Nasdaq Composite | about 26,009 | −2.6% (about −694 points) |
| S&P 500 | 7,663.43 | −1.21% (−93.74) |
| Dow Jones | 52,867.98 | +0.02% (+11.89) |
| Brent crude | about $112–113 a barrel | highest since May |
| US 10-year Treasury yield | about 4.95–5.02% | down about 0.1 point |
Closing figures for the Nasdaq differed slightly between data providers, with some showing a fall of 2.68% to just under 25,990.
The biggest movers
| Stock | Move | Why |
|---|---|---|
| Moderna | about −17% to −20% | Cancer vaccine study results leaked early |
| CoreWeave | about −10% | Worries over debt and the cost of capital |
| AMD | more than −8% | Chip sell-off |
| Meta Platforms | about −7% | Higher AI spending, first cash outflow in over a decade |
| Micron | about −6% | Chip sell-off; labour dispute in Taiwan |
| Nvidia | about −2% to −4% | Chip sell-off |
| Tesla | about −3% | Profit fell despite beating forecasts |
| Blackstone | up | Upbeat outlook |
Meta beat profit forecasts on Wednesday, but it raised its capital spending plans for AI data centres and reported its first quarterly cash outflow in more than ten years. It also announced a two-for-one split of its non-voting shares. Its credit risk measures rose to a record, feeding fears that big tech firms will have to borrow heavily to pay for the AI build-out.
Moderna suffered what was on course to be its worst day since it listed in December 2018 after results from a study of its experimental cancer vaccine were posted on social media ahead of schedule. Full details are due on Saturday at the European Society for Medical Oncology conference.
Background
US stocks had climbed to record levels this year on enthusiasm for artificial intelligence, with a handful of giant tech companies driving most of the gains. That concentration makes the indexes vulnerable when doubts emerge about whether the hundreds of billions being spent on chips and data centres will pay off. One fund manager summed up the mood by saying every index is now basically an AI index.
The oil shock adds a second worry. Brent crude has risen sharply this week as attacks on tankers in and near the Strait of Hormuz and on Saudi airports and oil sites spread, and as reports emerged that the US and Israel are preparing possible new strikes on Iran after the November 3 midterm elections. Higher oil prices threaten to keep inflation, and interest rates, higher for longer.
The selling followed steep falls in Asia earlier on Thursday, when Japan's Nikkei dropped 2.6% and South Korea's Kospi lost about 3.5%.
Why it matters
A sustained fall in tech shares hits the retirement savings of millions of people, since the biggest AI companies make up a large share of the main US indexes. Lower yields on Treasuries can ease borrowing costs, but a lasting oil spike would raise fuel and transport costs worldwide. For Pakistan and other oil importers in South Asia, oil above $110 means a bigger import bill and more pressure on fuel prices and currencies.
What happens next
US flash PMI data for October are due on Friday, alongside more company earnings. Moderna's full vaccine data come on Saturday, October 24, and investors will keep watching the Gulf and oil prices ahead of the US midterm elections on November 3.
Questions people are asking
Why did the Nasdaq fall today?
The Nasdaq fell about 2.6% on October 22, 2026, because investors worried that huge spending on artificial intelligence will force tech companies to borrow more, which hit Meta, chipmakers and cloud firms. Rising oil prices linked to attacks in the Gulf added to the selling.
Why did Meta stock drop after earnings?
Meta beat profit forecasts but fell about 7% because it raised its capital spending plans for AI data centres and reported its first quarterly cash outflow in more than a decade. It also announced a two-for-one split of its non-voting shares.
Why did Moderna shares crash?
Moderna fell around 17–20% on October 22, 2026, after results from a study of its experimental cancer vaccine leaked early on social media. Full data are due to be presented at a European cancer conference on Saturday, October 24.
