Business · Markets · 11 mins ago
Nasdaq falls 2.6% as renewed AI spending concerns hit tech stocks
US technology stocks fell sharply on Thursday as investors worried that companies are spending too much on artificial intelligence.
The Nasdaq Composite dropped 2.58%, its steepest one-day fall since June, while the S&P 500 also declined.
Meta's AI spending helped revive those concerns after the company reported a large cash outflow linked to its investments.
Semiconductor shares were hit particularly hard, and the sector index fell 6.7% in one account.
The selloff showed how doubts about AI costs can weigh on the wider market, because technology companies make up a large share of major indexes.
Investors also moved toward government bonds, whose yields fell, while rising oil prices added pressure by raising concerns about inflation.
The next focus is the US Federal Reserve's interest-rate decision, due in less than a week, as economic data remained relatively stable.
US technology stocks fell sharply on Thursday as investors questioned whether heavy artificial intelligence spending will generate enough profits.
The Nasdaq Composite dropped 2.58% to 26,008.86, its steepest one-day decline since June, according to Reuters reporting carried by the Economic Times.
Meta Platforms shares fell about 7% after its results and AI-related spending renewed investor concerns.
Semiconductor stocks were among the hardest hit, while the Dow Jones Industrial Average edged higher.
Higher oil prices, amid concerns about tensions in the Middle East, added pressure to markets.
- Who
- Investors sold technology and semiconductor stocks; companies including Meta Platforms and Tesla were among those affected.
- What
- The Nasdaq fell about 2.6% as investors reassessed the scale and likely returns of AI spending.
- When
- Thursday, October 22, 2026.
- Where
- US stock markets.
- Why
- Investors questioned whether AI companies’ large investments and borrowing would produce expected profits; higher oil prices also weighed on stocks.
This story does not have two clearly opposing sides.
US stocks fell as renewed concerns about AI spending and higher oil prices weighed on markets.
The Nasdaq fell 751 points, or 2.8%, before recovering slightly by the close, according to CBS News.
The Nasdaq Composite was down 2.58% at 26,008.86, while the Dow Jones Industrial Average edged up.
- Nasdaq Composite
- Fell 2.58% to 26,008.86
- S&P 500
- Fell 1.19% to 7,664.77
- Dow Jones Industrial Average
- Rose 0.03% to 52,873.60
- Meta Platforms
- Shares fell about 7%
- Brent crude
- Around $113 a barrel, up about 4% in the n-tv report
10 sources
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What people are saying
AI growth is dependent on capex (this is one of the most capital-intensive industries ever), and since capex is dramatically outpacing op. cash flow, companies are reliant on the largess of equity and debt investors to underwrite all the spending, but lately those markets are becoming increasingly less accommodating
Investors are starting to realize that there are some holes in the AI story
What is happening here is that the market is throwing out the baby with the bathwater.