The Nasdaq Composite fell 2.6% on October 22, 2026, its biggest daily decline since June, as renewed concerns about artificial intelligence spending hit US technology shares, Reuters reported. The S&P 500 lost 1.21%, while the Dow Jones Industrial Average edged up 0.02%, showing a sharp divide across Wall Street.
Reuters linked the selling to major corporate earnings that revived doubts about the AI investment race. Meta's shares declined despite revenue exceeding expectations. Investors focused on the cost of building computing capacity and the company's plans for non-voting shares, which could help it raise capital for further investment.
Meta's October 21 results provide the financial background: quarterly revenue reached $64.60 billion, up 26% from a year earlier, but free cash flow was negative $2.12 billion. Capital expenditure, including finance lease principal payments, totaled $34.91 billion. The company's figures show spending outstripping cash generated by operations despite continued revenue growth.
The decline extended beyond individual earnings reports. According to AP, Nvidia dropped 4.4% and was the largest drag on the S&P 500, reflecting its heavy index weight. Yet most US stocks advanced. South Korea's Kospi fell 3.5%, Hong Kong's Hang Seng lost 3% and Japan's Nikkei 225 declined 2.7%, as the technology retreat spread across markets.
Higher energy prices added pressure. AP reported that Brent crude rose 4% to $113.17 a barrel amid concerns about the Iran war. Separately, Interactive Brokers economist Jose Torres described investors moving into US Treasuries as doubts about AI returns grew; falling bond yields helped support more defensive and interest-rate-sensitive shares.
The spending outlook remains central to the debate. Meta now forecasts 2026 capital expenditure of $135 billion to $145 billion, compared with its previous $130 billion to $145 billion range. Its revenue forecast for the fourth quarter is $73 billion to $76 billion. These are company projections, leaving the scale of future spending and the returns it generates under scrutiny.
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