Nasdaq falls 2.6% as Meta, chip stocks slide and oil rises
Key Facts
The Nasdaq Composite fell 694 points, or 2.6%, to 26,008.86 at the close on Thursday, October 22, 2026, according to the Associated Press, amid a selloff in artificial intelligence and large technology stocks. The S&P index lost 93.74 points, or 1.2%, to close at 7,663.43, as major U.S. indexes ended mixed. The Dow Jones edged up 11.89 points, less than 0.1%, to finish at 52,867.98. The first two indexes declined despite gains in about two-thirds of S&P constituents, as losses in large technology companies weighed on the broader index, the agency reported. Among AI stocks, Nvidia fell 4.4% during the session's selloff. Losses extended to semiconductor manufacturing equipment maker Lam Research, whose shares dropped 11.8%.
Meta shares fell 7% following its quarterly earnings announcement, according to the Associated Press, despite revenue growth that exceeded analysts' expectations in the third quarter of 2026. Revenue reached $64.60 billion, up 26% year on year, compared with $51.24 billion in the corresponding quarter of 2025. Analysts had forecast third-quarter revenue of $63.34 billion, and the actual figure exceeded that level. On earnings, Meta said quarterly earnings per share would have been "$7.40 per share" excluding the legal settlement provision. The company tied that figure to excluding the provision from quarterly earnings calculations, the item it addressed in its earnings-per-share presentation. Alongside the results, Meta narrowed its 2026 capital spending forecast to $135–145 billion from a previous estimate of $130–145 billion, according to the agency.
The spending forecast update follows a previous quarter in which Meta recorded capital expenditures of $31.08 billion, according to the company's filing with the U.S. Securities and Exchange Commission. That amount covers the second quarter of 2026 and includes principal payments on finance lease obligations alongside capital expenditures. The company said in the filing that "capital expenditures, including principal payments on finance lease obligations, were $31.08 billion." On liquidity, Meta recorded positive free cash flow of $784 million during the same second quarter. The company described the figure by saying "free cash flow was $784 million," as part of results for the period preceding the third-quarter earnings announcement.
In energy markets, Brent crude jumped 4% to $113.17 a barrel during Thursday's trading, according to the Associated Press, alongside losses in U.S. technology stocks. Crude rose after touching its highest level in 5 months during the session. The agency attributed oil's gains to fears that the war with Iran would continue and disrupt the global energy sector's return to normal. In year-to-date equity performance, the Nasdaq Composite retained gains of 11.9% through the October 22 close despite its daily decline. The index's cumulative gain over that period totaled 2,766.87 points, according to the closing figures published by the agency.
The moves come ahead of the next Federal Open Market Committee meeting, scheduled for October, according to the calendar published on the Federal Reserve's website. The Federal Reserve is chaired by Kevin Warsh, who took office on May 22, 2026, according to his official biography at the U.S. central bank. The Fed's calendar sets aside two days for the next meeting. It also lists a post-meeting press conference as part of its announced monetary policy schedule. The committee is scheduled to meet on October 27 and 28, 2026.