Nasdaq falls 2.6% as chip stocks slide, Lam Research and Meta retreat

Key Facts

The Nasdaq Composite fell 2.6% at the close on October 22, 2026, amid a selloff in chip and artificial intelligence stocks, according to the Associated Press. The index lost 694 points to finish at 26,008.86, as Lam Research, Nvidia and Meta Platforms shares declined. Losses extended to the S&P index, which fell 1.2% to 7,663.43 in the same session. Lam Research was among the sharp decliners, losing 11.8% after the company reported its financial results. Nvidia fell 4.4% in the selloff in artificial intelligence stocks reported by the agency. Meta Platforms lost 7%, with its decline coinciding with pressure on chipmakers during the session.

Lam Research reported revenue of $8.22 billion in its September-quarter earnings release and set the midpoint of its December-quarter revenue guidance at $8.60 billion. The company's revenue forecast for the next quarter exceeds the level recorded in the quarter ended in September, as management highlighted demand linked to artificial intelligence. The company set the midpoint of its December-quarter diluted earnings per share guidance at $2.33 under U.S. generally accepted accounting principles. The midpoint of its adjusted earnings per share guidance was at the same level, according to the company statement. Chief Executive Tim Archer said artificial intelligence was driving semiconductor demand and increasing device complexity. Archer described the trend by saying that "artificial intelligence is driving greater demand for semiconductors and greater complexity in devices."

The Nasdaq's decline followed a rally on October 21, when the index rose 1.1%, according to the Associated Press. It had ended that session at 26,702.86 before reversing course in the next trading session. The reversal was preceded by pressure on technology stocks in the October 16 session, when the tech-heavy Nasdaq fell 2.1%. As background to Meta's moves, the agency cited equity strategist Andrew Rocco as saying the company plans to issue non-voting shares to finance its artificial intelligence investments. According to Rocco, the planned issuance structure would allow the company to finance those investments while preserving Chief Executive Mark Zuckerberg's control.

These moves follow the Federal Reserve's September decision to raise its target interest rate range by a quarter of a percentage point. The U.S. central bank set the range at 3.75%–4%, according to the monetary policy statement issued after the meeting. On the U.S. consumer front, the Conference Board's confidence index fell to 81.9 in September from 88.6 in August. Markets are also looking ahead to the final reading of the University of Michigan's October consumer sentiment survey, after sentiment deteriorated in recent readings, according to the Associated Press. The next Conference Board index reading is scheduled for release on Tuesday, October 27, 2026, at 10 a.m. U.S. Eastern Time, according to the organization's published schedule. The Federal Open Market Committee's next meeting begins the same day and runs on October 27 and 28. The meeting will be followed by a press conference, according to the Federal Reserve's official calendar.