EL7.AI
StocksMediumUpdated×4•Originally published 22 October 2026•Updated 23 October 2026•
4 min read

Nasdaq falls 2.6% as concerns over AI investment funding resurface

Key Facts

1The Nasdaq Composite lost 2.6%, or 694 points, to close at 26,008.86.
2Lam Research fell 11.8% despite earnings and revenue exceeding analysts' expectations.
3Meta's revenue rose 26% to $64.60 billion, exceeding expectations of $63.34 billion.
4Meta narrowed its expected capital expenditure range to $135–145 billion, from $130–145 billion previously.
5Brent crude rose 4% to $113.17 a barrel.

The Nasdaq Composite closed Thursday, October 22, 2026, down 2.6% as technology stocks came under renewed pressure from concerns over funding for artificial intelligence investment, according to the Associated Press. The index lost 694 points to settle at 26,008.86 in a session in which losses were concentrated in technology-heavy indexes. The S&P fell 1.2%, posting its worst daily performance since July, the news agency reported. By contrast, most U.S. stocks rose during trading, despite declines in the two indexes that include major technology companies. The Russell small-cap index gained 0.1%, continuing to diverge from the selloff weighing on the Nasdaq.

The Associated Press linked pressure on AI stocks to the cost of borrowing to finance data center construction and purchases of the chips needed to run them. Nvidia fell 4.4% and was the single biggest drag on the S&P during the session, according to the news agency's coverage. CoreWeave shares dropped 10.1% amid investor concerns over the company's debt, extending losses to AI infrastructure companies alongside chipmakers. Lam Research shares also fell 11.8%, despite the company reporting earnings and revenue that exceeded analysts' expectations. Lam Research's decline followed better-than-expected results, as Nvidia and CoreWeave also faced selling pressure in the same session.

Meta shares closed down 7% on Thursday, according to Investing.com, despite quarterly revenue growth that exceeded Wall Street expectations. Revenue for the third quarter of 2026 was about $64.60 billion, up 26% year on year, according to the Associated Press. Revenue had totaled $51.24 billion in the corresponding period a year earlier, while analysts had expected $63.34 billion for the latest reported quarter. On investment, the company narrowed its expected capital expenditure range for 2026 to between $135 billion and $145 billion. That compares with a previous range of $130 billion to $145 billion, according to the news agency. The Associated Press said expected spending would range "between $135 billion and $145 billion," with the lower end raised and the upper end of the annual estimates unchanged.

Meta had previously raised the lower end of its capital expenditure forecast in July, ahead of the latest adjustment to its annual range. Reuters reported in an article published by Investing.com that the company had then forecast spending of between $130 billion and $145 billion during 2026. The range before the July announcement was $125 billion to $145 billion, showing continued increases in the lower end of spending across successive updates. AI infrastructure funding pressures were also evident in the October 14 session, before the latest selloff, according to Reuters. In that session, Nebius shares fell 15.1% and CoreWeave shares dropped 9.5% amid funding concerns affecting companies in the sector.

Tesla's official results showed capital expenditure of $4,732 million in the third quarter of 2026, compared with $2,248 million in the corresponding quarter a year earlier. However, the quarterly comparison showed spending fell from $5,789 million in the second quarter of 2026, according to the results document published on the company's investor relations website. Spending therefore rose year on year but declined from the immediately preceding quarter. Tesla generated positive free cash flow of $1.5 billion in the third quarter, according to the official results. Meanwhile, net income attributable to common shareholders fell to $787 million, compared with $1,373 million in the third quarter of 2025.

In other markets, Brent crude rose 4% to $113.17 a barrel during Thursday's session, according to the Associated Press. The yield on 10-year U.S. Treasury notes fell to 4.97% as technology-heavy stock indexes declined. The yield had reached 5.13% at Wednesday's close, according to the news agency, before falling in the following session. On corporate forecasts, Meta expects revenue of between $73 billion and $76 billion in the fourth quarter of 2026, according to Investing.com. That comes ahead of the next meeting of the Federal Reserve's Federal Open Market Committee, scheduled for October 27 and 28, 2026, according to the U.S. central bank's official calendar.