Financial News October 22, 2026: Nasdaq Sinks as Meta AI Costs and Oil Surge

Wall Street fell sharply Thursday as Meta’s mounting AI costs and Tesla’s spending reduction revived doubts about the technology investment boom. Oil surged to a five-month high, Treasury yields fell below 5%, and European banks joined the global selloff.

By North American Talk Radio Staff | October 22, 2026

Market information was current as of approximately 2:45 p.m. Eastern on Thursday, October 22. Thursday’s U.S. stock, bond, commodity, currency and cryptocurrency sessions remained underway. Wednesday’s Wall Street results and Thursday’s European and Asian closes are identified as completed figures.

Wall Street’s brief artificial-intelligence rebound reversed Thursday as investors reacted to Meta Platforms’ enormous spending plans, Tesla’s lower investment forecast and another surge in Middle East oil prices.

The Nasdaq Composite fell more than 2%, semiconductor stocks suffered their largest decline in months and Meta’s credit-risk indicator reached a record. The selloff sent investors toward Treasury securities, pushing the benchmark 10-year yield below 5%.

Oil moved in the opposite direction. Brent crude climbed above $111 per barrel after new attacks in Saudi Arabia renewed concern about supplies from the Middle East. The combination of falling technology stocks and rising energy prices created a difficult mix of weaker risk appetite and persistent inflation pressure.

Nasdaq Drops as AI Spending Anxiety Returns

As of approximately 2:45 p.m. Eastern, the Nasdaq was down about 2.7%. The S&P 500 had declined roughly 1.4%, while the Dow Jones Industrial Average was approximately 0.2% lower.

The PHLX Semiconductor Index fell more than 5% and was headed for its largest one-day decline since June. CoreWeave and other heavily financed AI-infrastructure companies came under renewed pressure as investors questioned whether data-center profits will justify the scale of borrowing and construction.

The market had rallied Wednesday after SpaceX reported its first quarterly profit as a public company and Super Micro Computer issued a strong outlook. Thursday’s reversal showed that investors remain willing to reward successful AI projects but have become increasingly sensitive to spending, financing and free cash flow.

Spotify, Procter & Gamble, Lockheed Martin, Blackstone and Union Pacific gained following their earnings reports. However, those advances were not large enough to offset losses across technology and communication-services shares.

Reuters reported Thursday’s intraday Wall Street performance and sector moves.

Meta’s AI Bill Raises Credit Concerns

Meta shares fell more than 6% even after the company reported third-quarter revenue above expectations. Investors focused instead on higher capital commitments, negative free cash flow and a plan to issue a new class of non-voting stock.

Meta increased the lower end of its 2026 capital-expenditure forecast, producing a new range of $135 billion to $145 billion. The company reported a $2.12 billion free-cash-flow deficit during the third quarter, its first negative quarter on that measure since 2012.

The cost of insuring Meta’s debt against default rose to a record. Five-year credit-default swaps widened 7.6 basis points to 114.79 basis points, according to Markit data cited by Reuters.

Meta’s AI recommendation systems helped produce strong advertising revenue, and executives remain optimistic about the Muse agent. Nevertheless, the market increasingly wants evidence that new AI revenue can grow quickly enough to cover data-center, chip and electricity costs.

Reuters detailed Meta’s spending forecast, cash-flow deficit and record credit-risk reading.

Tesla Cuts Spending as SpaceX Merger Questions Continue

Tesla reduced its 2026 capital-expenditure forecast by approximately one-fifth, to about $20 billion from more than $25 billion. Shares declined as investors questioned whether lower spending could slow development of artificial intelligence, robotaxis and humanoid robots.

The company generated $1.53 billion in free cash flow during the third quarter after analysts had expected a multibillion-dollar cash burn. However, the improvement came largely because Tesla spent less than anticipated. Third-quarter capital expenditures totaled $4.7 billion, compared with an analyst estimate near $7.5 billion.

Quarterly revenue was approximately unchanged from a year earlier but exceeded expectations. Net income fell 43%, while automotive gross margin excluding regulatory credits reached 18.1%, above analysts’ estimate of 16.7%.

The results intensified debate about a possible combination with SpaceX. A merger could unite vehicles, energy, robotics, satellites, communications and AI, but it would also connect Tesla with a company planning extremely large investments in computing infrastructure.

Reuters reported Tesla’s results, revised spending forecast and merger considerations.

Wednesday’s Completed Wall Street Results

Wednesday’s completed session produced broad gains before Meta and Tesla published their results.

• The S&P 500 gained 0.6% to 7,757.17.
• The Dow rose 360.21 points, or 0.7%, to 52,856.09.
• The Nasdaq Composite advanced 1.1% to 26,702.86.
• The Russell 2000 increased 0.3% to 2,781.02.

SpaceX and Super Micro led Wednesday’s AI rebound, while Netflix and AT&T declined. Thursday’s selloff erased the Nasdaq’s advance and demonstrated how quickly sentiment can change when investors move from revenue growth to capital costs.

The Associated Press published Wednesday’s official index closes, while Reuters reported the completed technology-led rally.

Oil Surges to Five-Month High

Brent crude rose to approximately $111.25 per barrel Thursday, while West Texas Intermediate climbed toward $98.35. Both benchmarks reached their highest levels in several months.

New Houthi attacks in Saudi Arabia intensified concern about petroleum infrastructure and transportation routes. The market also remained sensitive to the possibility of broader U.S. and Israeli military action against Iran.

Higher crude prices affect financial markets through several channels. They lift gasoline, diesel and freight costs; pressure household spending; reduce margins for energy-intensive companies; and increase the risk that central banks must keep interest rates elevated.

The oil shock helped explain why Thursday’s Treasury rally did not translate into support for growth stocks. Yields fell because investors sought safety, not because the inflation outlook had improved.

Reuters tracked Thursday’s global stocks, oil prices, bonds and cryptocurrencies.

Treasury Yield Falls Below 5% Ahead of Fed Meeting

The 10-year Treasury yield dropped below 5% as investors shifted money from equities into government debt. Bond prices rise when yields fall.

The decline reduced borrowing benchmarks for mortgages and corporate debt, but it did not eliminate expectations for tighter monetary policy. Futures markets still assigned a high probability to another Federal Reserve increase in December.

Policymakers meet October 27–28 and are widely expected to leave the federal-funds target unchanged. September consumer and producer inflation exceeded forecasts, while Thursday’s oil increase added another potential source of price pressure.

The divergence between stocks and Treasurys is important. Investors were not celebrating easier policy; they were reducing exposure to risk while waiting for greater clarity about AI financing and Middle East energy supplies.

European Banks Lead Broad Selloff

European markets completed Thursday’s session sharply lower. The STOXX 600 fell more than 1% to 637.74, its largest decline in three weeks. Technology shares lost about 2%, while the euro-zone banking index plunged 4.2%.

Bankinter declined 7.6% as higher deposit costs affected its results. Barclays fell 2.3% after reporting weaker-than-expected profit and announcing job cuts. Luxury company Hermès lost 5% following soft revenue figures.

Healthcare provided the principal support. UCB surged 21.6% after raising its revenue forecast, while Nestlé gained 1.1% following strong sales growth.

France’s fiscal stress remained a separate threat. The spread between French and German 10-year yields reached a 15-year high as investors prepared for Moody’s October 23 review of France’s Aa3 sovereign rating.

Reuters reported Thursday’s completed European market results.

Asian Technology Markets Reverse Wednesday’s Rally

Asian technology markets completed Thursday’s session lower as the earnings-driven optimism from SpaceX and Super Micro gave way to renewed spending concerns.

South Korea’s Kospi fell approximately 3.5%, Japan’s Nikkei declined about 2.7% and Hong Kong’s Hang Seng lost roughly 3%. Semiconductor and data-center companies produced some of the largest declines.

The losses showed that AI investment has become a global macroeconomic factor. Changes in capital spending by a small group of American technology companies now affect chipmakers, electricity suppliers, construction firms and financial markets across Asia and Europe.

Yen Rises as Dollar and Euro Weaken

The Japanese yen gained about 0.75% to 156.96 per dollar, its strongest daily advance in nearly a month. Investors sought traditional safe-haven currencies as technology shares fell and oil rose.

The U.S. Dollar Index slipped 0.08% to approximately 101.60. The euro declined about 0.1% to $1.1222 as French fiscal and political concerns outweighed the effect of falling U.S. Treasury yields.

The Swiss franc also strengthened. Sterling edged higher following strong British inflation data, which increased expectations that the Bank of England may raise rates in November.

Reuters reported Thursday’s currency movements.

Gold and Cryptocurrency Fall

Spot gold fell 2.4% to approximately $4,041.39 per ounce, its lowest level since August 3. U.S. gold futures settled 2.2% lower at $4,060.40.

Silver dropped 5.4% to $54.84, platinum lost 3.7% and palladium declined 2.7%. Higher oil prices strengthened expectations that interest rates will remain elevated, reducing the appeal of non-yielding metals.

Bitcoin traded near $81,260 Thursday afternoon, down approximately 3.5% after moving between about $80,989 and $84,786. Ethereum fell roughly 4.3% to $2,380 after trading between approximately $2,373 and $2,500.

The cryptocurrency decline reflected the same reduction in risk appetite affecting technology stocks. Although Treasury yields fell, the move represented defensive buying rather than an expectation of immediate monetary easing.

Reuters reported Thursday’s completed precious-metals results.

Financial Market Outlook

Thursday’s selloff exposed the central contradiction within the AI investment boom. Companies may be punished for spending too much, as Meta was, but they may also be punished for spending too little, as Tesla demonstrated.

That leaves investors evaluating each company’s financing capacity, free cash flow and ability to convert infrastructure into revenue. The days when almost any AI spending announcement lifted a stock appear to be ending.

Investors should monitor:

• Whether the Nasdaq stabilizes after its steepest decline since June.
• Meta’s credit spreads and investor response to its non-voting share plan.
• Further details concerning a possible Tesla–SpaceX merger.
• Brent crude after reaching a five-month high.
• Additional attacks on Saudi infrastructure or Gulf shipping.
• France’s sovereign-rating review on October 23.
• The Federal Reserve’s October 27–28 meeting.

The decline in Treasury yields provides some financial relief, but it cannot by itself repair confidence. Markets need evidence that AI investment will generate durable cash flow—and that the energy shock will not force central banks to tighten more aggressively.