Business · Markets · 7 hrs ago
Dow falls more than 600 points as investors question AI spending
The Dow fell more than 600 points on Friday as US stocks ended a volatile week lower.
Investors are questioning whether major technology companies can sustain their planned spending on AI data centres.
Some firms have reported strong quarterly results but also announced higher AI costs, raising concern that the spending could reduce future profits.
The pullback affected Wall Street’s main indexes, including the S&P 500 and Nasdaq, while energy shares rose as oil prices climbed amid concerns about supply disruption in the Middle East.
The debate matters because investors want to know whether the expected returns from AI will justify the large sums companies are investing.
Next week, about one third of S&P 500 companies are due to report results, including Alphabet, Microsoft and Amazon, putting their spending plans in focus.
Investors will also watch the Federal Reserve’s policy meeting on Wednesday for clues about interest rates.
The Dow Jones Industrial Average fell more than 600 points on Friday as investors questioned whether planned spending on artificial intelligence data centres can continue at the expected pace.
The Dow ended down 1.25% at 52,209.16, while the S&P 500 fell 0.52% to 7,623.86 and the Nasdaq Composite slipped 0.21% to 25,955.34.
Investors were concerned that large technology companies’ AI spending could weigh on future profits and may not pay off quickly.
Attention was also turning to a busy earnings calendar and the Federal Reserve’s upcoming policy meeting.
Energy stocks rose to a record as oil prices climbed amid concerns about disruption to Middle East supplies.
- Who
- US stock market investors and major US stock indexes.
- What
- The Dow fell more than 600 points as investors questioned the scale and returns of planned AI spending.
- When
- Friday, October 23, 2026.
- Where
- Wall Street, New York.
- Why
- Investors feared that costly AI investments may not continue at the expected pace or quickly generate returns.
This story does not have two clearly opposing sides.
Strong quarterly results from technology companies initially supported US markets.
Investors shifted their focus to the cost of companies’ planned AI investments.
The Dow, S&P 500 and Nasdaq Composite ended lower.
- Dow Jones close
- 52,209.16, down 1.25%
- S&P 500 close
- 7,623.86, down 0.52%
- Nasdaq Composite close
- 25,955.34, down 0.21%
- Fed policy meeting
- Expected the following Wednesday; investors looked for clues about a possible December rate hike
- Earnings outlook
- About one third of S&P 500 companies were scheduled to report quarterly results the following week
2 sources
What people are saying
There's certainly the potential that we see less invested in an AI data center build out next year than has been projected.
So I certainly think that's giving pause.