Wall Street ended a choppy week on the back foot. On Thursday, October 22, 2026, the Nasdaq Composite fell 2.6% to 26,008.86, its steepest one-day decline since early June. The S&P 500 dropped 1.21% to 7,663.43, while the Dow Jones Industrial Average held almost flat, finishing about 0.02% higher thanks to its smaller weighting in technology.
Earnings put AI spending under the microscope
The trigger was a fresh round of results from large technology companies. Meta Platforms reported third-quarter revenue up 26% to about $64.6 billion, yet its shares closed roughly 7% lower. Investors focused on the cost side: heavy data-center investment pushed the company’s free cash flow below zero for the quarter, it narrowed its 2026 capital spending outlook to between $135 billion and $145 billion, and it announced plans for a new class of non-voting shares that could be used to raise capital.
Tesla also slipped about 3.1% after its report. Earnings per share beat expectations, but the market questioned how much the company is spending on artificial intelligence and robotics and when that spending will turn into profit.
Chipmakers take the heaviest hit
Semiconductor stocks led the decline. The Philadelphia Semiconductor Index fell about 6.7%, with every one of its 30 members finishing lower. Intel and AMD were among the biggest losers, each down roughly 8%. The message from the session was simple: when the market starts to doubt the return on AI investment, the companies that sell the hardware feel it first.
Oil and geopolitics weigh on Friday
On Friday, October 23, the pressure shifted from tech to energy prices. US crude (WTI) rose 3.8% to settle at $103.27 a barrel and Brent settled at $116.72, after reports that the United States and Israel may be preparing renewed strikes on Iran, and Iran said it was ready to respond. The Dow lost 652.82 points, or 1.23%, to 52,215.16. The S&P 500 fell 0.52% to 7,623.68 and the Nasdaq eased 0.21% to 25,955.34, as some chip stocks recovered part of Thursday’s losses.
For the week as a whole, the S&P 500 lost 0.5% and the Nasdaq 0.7%, while the Dow still managed a 0.4% gain, its third weekly advance in a row.
What comes next
Attention now turns to the Federal Reserve, which meets on October 27 and 28. Its target range stands at 3.75% to 4.00%, and most economists and futures pricing expect no change this time. The tone of the statement on inflation and on the path toward December may matter more for stocks than the decision itself, especially with oil above $100.
Index markets can swing sharply around earnings, central bank meetings and geopolitical headlines. Trading indices and their derivatives carries real risk, so position sizes should always reflect how much you can afford to lose.
Why it matters
Investors are no longer rewarding AI spending automatically. Meta's negative free cash flow and higher spending plans revived the question of when these investments will pay off, and rising oil prices added a second source of worry by pointing to higher costs and inflation.
Market reaction
Selling was concentrated in technology and semiconductors on Thursday, with the chip index down about 6.7% while the Dow barely moved. On Friday the decline broadened: the Dow lost more than 650 points as crude jumped, even as some chip stocks bounced.
MIZANOVA view
The week showed how sensitive tech-heavy indices are to any doubt about AI returns. With the Fed meeting on October 27 and 28 and oil prices tied to Middle East headlines, volatility may stay elevated, so watching the Fed's tone and energy prices is more useful than reacting to a single session.