Nasdaq slides as tech giants shed nearly $800 billion on earnings, AI spending and oil

what happened

According to TradingView, US tech-heavy indices suffered their roughest session in months on Thursday, October 22. Underwhelming results from Meta Platforms and Tesla, worries about AI infrastructure budgets and firmer crude prices prompted investors to move out of growth leaders and into dividend-paying consumer staples and utilities. The Dow Jones held up better than the S&P 500 and Nasdaq, climbing more than 300 points off its intraday low to finish roughly flat. The S&P 500 slipped 1.2%, the Nasdaq Composite lost 2.6% and the Nasdaq 100 dropped 2.9%, its largest one-day decline since June. The Philadelphia Semiconductor index sank 7%, to its lowest level in more than three months.

Meta shares dropped 7% as traders digested the company's first negative free cash flow since going public. Its planned spending commitments rose to $825 billion from $700 billion flagged in July. A gauge of Meta's credit risk reached a record, and its bonds fell. The slump spilled over to peers: Nvidia fell 4.4%, Amazon 4.6%, Microsoft 2.2% and Alphabet 3.1%, together erasing close to $800 billion of market value. Memory chipmakers were hit harder, with AMD, Intel and SK Hynix ADRs down 8% apiece, while Micron, Western Digital and Sandisk lost between 6% and 8%.

Oil kept climbing. Brent settled above $113 a barrel after Houthi forces said they had attacked a Saudi Aramco oilfield, King Fahd Airport and Aramco's headquarters. The company told staff at its Dhahran headquarters to stay away and work remotely. Physical Dated Brent, however, has shed close to $15 over two weeks and trades near $120. Bond yields fell as investors sought havens: the US 10-year yield dropped below 5% for the first time in over a month, with some maturities down more than 20 basis points.

why it matters

The combination of an equity sell-off driven by AI spending doubts and firmer crude matters because money is rotating into defensive assets and pushing government bond yields lower. Expensive oil keeps inflation expectations in focus, while Meta's shift to negative free cash flow raises questions about returns on large AI projects. Traders will watch whether attacks in the Middle East and high physical crude prices persist.

market impact

Tech stocks and Nasdaq futures: pressure from AI spending doubts; Brent and government bonds gain from geopolitical risk and safe-haven demand.

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