Nasdaq futures fall 1.8% as AI spending concerns resurface
Key Facts
Nasdaq 100 futures fell 1.8% on the morning of October 22, 2026, according to FXEmpire, amid concerns over artificial intelligence spending and its expected returns. S&P 500 futures fell 1.02% in the same report, with U.S. indexes under pressure ahead of the open. In Asian markets, South Korea's Kospi ended the same day's session down 3.5%, according to the Associated Press. Losses continued during the U.S. session, with the S&P 500 closing down 1.2%, the agency reported. The Nasdaq Composite fell 2.6% at the close, extending the market pressure seen in morning futures trading.
Tesla's third-quarter results were mixed, with adjusted earnings per share of 48 cents beating Wall Street analysts' expectations by 3 cents, according to the Associated Press. The company, however, cut its 2026 capital spending forecast to $20 billion from $25 billion. Tesla's filing with the U.S. Securities and Exchange Commission showed automotive revenue fell to $20,560 million in the third quarter of 2026. That compared with $21,205 million in the same period of 2025, leaving the business below its year-earlier level despite adjusted earnings per share beating expectations. On cash flow, the company reported positive free cash flow of $1,531 million in the third quarter. That compared with negative free cash flow of $1,092 million in the second quarter, according to the same filing. Tesla said battery availability continued to constrain vehicle production growth during the quarter, describing it as "the limiting factor for scaling."
Meta's quarterly revenue beat analysts' expectations, while earnings fell short, according to the Associated Press. The company's revenue rose to $64.60 billion in the third quarter of 2026 from $51.24 billion in the same quarter a year earlier. Revenue grew 26% year on year, while the company's filing with the U.S. Securities and Exchange Commission showed negative free cash flow of $2.12 billion for the quarter. According to Reuters, technology companies' results heightened concerns over the vast capital needed to build artificial intelligence infrastructure and uncertainty over when returns would materialize. Steve Sosnick, chief market strategist at Interactive Brokers, told Reuters: "Investors are now reassessing the pace of AI spending and the returns that spending can generate."
As part of financing its AI expansion, Meta announced the creation of a new class of non-voting shares, according to Reuters. The company expects fourth-quarter 2026 revenue of between $73 billion and $76 billion, according to its filing with the U.S. Securities and Exchange Commission. On the U.S. economy, the Labor Department released data on October 22 showing seasonally adjusted initial jobless claims fell to 194,000. The reading covers the week ended October 17, adding a labor market update to the economic picture ahead of the next Federal Reserve meeting. According to the Federal Reserve's calendar, the Federal Open Market Committee is scheduled to meet on October 27 and 28, 2026.