Nasdaq falls 2.6% as chip stocks slump and Lam Research slides
Key Facts
The Nasdaq Composite closed Thursday, October 22, 2026, down 2.6%, losing 694 points to 26,008.86, according to the Associated Press, amid sharp losses in semiconductor stocks. The S&P index fell 1.2% in the same session, the agency reported. The Philadelphia Semiconductor Index dropped 6.7%, its biggest daily percentage loss since June 23, according to Reuters. That left the chip index more than 26% below its record close. Despite the retreat from its peak, the index retained a year-to-date gain of 51.5%, according to Reuters. In the bond market, the U.S. 10-year Treasury yield fell to 4.97% from 5.13% on Wednesday evening, according to the Associated Press. In energy markets, Brent crude jumped 4% to $113.17 a barrel, the agency reported.
Among sector stocks, Lam Research fell 11.8%, according to the Associated Press, after reporting revenue of $8.22 billion for the quarter ended in September. The decline came despite earnings and revenue slightly exceeding market expectations, while the midpoint of its earnings forecast range for the following quarter was slightly below analysts' estimates, the agency reported. The company's chief executive said in the earnings statement that "artificial intelligence is driving increased demand for semiconductors and greater device complexity." Lam Research expects revenue of $8.60 billion for the quarter ending in December 2026, plus or minus $400 million. In Meta's results, third-quarter revenue rose 26% year on year to $64.60 billion, according to the Associated Press. The company's revenue exceeded Wall Street expectations of $63.34 billion, the agency reported. Across the third-quarter earnings season, 111 S&P companies had reported results, with 83% beating analysts' earnings estimates, according to London Stock Exchange Group data cited by Reuters.
In the U.S. labor market, EL7's economic calendar showed initial jobless claims of 194 thousand in the October 22 release. The reading was below expectations of 200 thousand claims, which was also the previous reading recorded in the calendar. Meanwhile, seasonally adjusted continuing claims totaled 1,728,000 for the week ended October 10, according to the U.S. Labor Department. Continuing claims rose by 25,000 from the revised previous reading of 1,703,000 for the week ended October 3. The seasonally adjusted insured unemployment rate held at 1.1% for the week ended October 10, the department said.
The market moves and jobless claims data follow the Federal Reserve's quarter-percentage-point interest rate increase at its September meeting, according to its monetary policy decision statement. The decision brought the target range for the federal funds rate to 3.75%–4%. Minutes of the meeting showed that most participants considered another increase in the target range likely to be appropriate by year-end. The U.S. central bank holds its next meeting on October 27–28, 2026, according to the Federal Open Market Committee's official schedule. That will be followed by the December 8–9 meeting, which is accompanied by the release of the Summary of Economic Projections.