Nasdaq falls 2.8% on AI funding concerns, rising oil
Key Facts
The Nasdaq Composite fell 2.8% during trading on Thursday, October 22, 2026, according to an Associated Press update at 2:30 p.m. Eastern Time, amid turbulence in artificial intelligence stocks and concerns over financing their investments. The agency linked the turbulence to rising borrowing costs for building data centers and buying chips, describing the concern as "how expensive it is to borrow money." It also pointed to concerns over excessive AI stock valuations, alongside the burdens of financing infrastructure for the sector. In energy markets, the agency's session coverage reported Brent crude rising 3.7% to $112.80 a barrel during trading. Oil rose amid fears of war with Iran, according to AP, coinciding with pressure on technology stocks during the U.S. session.
In corporate earnings, Meta reported revenue of $64.60 billion for the third quarter of 2026, according to AP's coverage of its quarterly results. Revenue rose 26% year on year from $51.24 billion in the corresponding quarter of 2025. The figure exceeded analysts' expectations of $63.34 billion for the same period, according to the agency. Third-quarter capital expenditure totaled about $34.9 billion, according to earnings details published by Investing.com. The company posted negative free cash flow of about $2.1 billion during the same period, according to the website. In a market reaction during Thursday's session, Meta shares fell more than 8%, according to a separate Investing.com update, despite the company's quarterly revenue exceeding analysts' estimates.
Tesla lowered its full-year 2026 capital expenditure forecast to about $20 billion from a previous estimate of more than $25 billion. The company spent $8.53 billion during 2025, according to a Reuters report published in September, marking its annual spending level before the current investment plan. In its results, Tesla's net profit for the third quarter of 2026 fell 44% year on year to $787 million, according to AP. Revenue totaled about $28 billion during the quarter, remaining nearly flat compared with the same period a year earlier. Revenue came in slightly below analysts' expectations, according to the agency, in quarterly results that accompanied the reduction in annual capital expenditure estimates.
Against the backdrop of Tesla's financing position, the company entered into credit agreements totaling $30 billion on September 29, 2026, according to a Reuters report published on Investing.com. Tesla said in a filing with the U.S. Securities and Exchange Commission that no borrowings were outstanding under the facilities when they were established on that date. In the same filing, it added that it "does not currently plan to draw on the facilities during 2026," outlining its plans for using the new credit lines. In its third-quarter results, the company generated positive free cash flow of $1.5 billion, according to AP. Analysts had expected Tesla to burn cash during the period, according to the agency, before the positive quarterly cash figure was announced.
In its outlook for the remainder of 2026, Meta narrowed its annual capital expenditure range to between $135 billion and $145 billion, according to details of its earnings presentation published by Investing.com. The previous range was between $130 billion and $145 billion, with the company raising the lower end while keeping the upper end unchanged. For the fourth quarter of 2026, Meta expects revenue of between $73 billion and $76 billion, according to AP. That outlook compares with analysts' estimates of $73.65 billion for the same quarter, according to the agency's coverage of the company's results. On the monetary policy calendar, the Federal Reserve's Federal Open Market Committee meets on October 27 and 28, 2026, according to the U.S. central bank's official calendar.