VIX rises to 19.91 points as market volatility builds after technology selloff
Key Facts
The VIX spot price reached 19.91 points on October 23, 2026, up 4.62%, or 0.88 points, from its previous close of 19.03 points, according to data from the Chicago Board Options Exchange. The index measures market expectations for near-term volatility implied by S&P 500 options prices. Its rise followed a selloff in technology shares during Thursday’s session, October 22, when major indexes and stocks fell. Reuters linked the selloff to rising costs for long-term AI projects and uncertainty over their returns, but did not attribute the VIX’s move the following day to a single cause. EL7 data showed the VIX’s daily close at 19.20 points on October 23, after 19.03 points on October 22 and 16.68 points on October 21; this closing measure differs from the spot price reported by Cboe.
In Thursday’s session, the Nasdaq Composite fell about 2.6%, while the S&P 500 dropped 1.2%, its worst daily performance since July, according to Reuters and the Associated Press. Meta fell 7%, its biggest decline since July, while Nvidia shares lost 4% and Lam Research fell 12%. The AP said most stocks rose despite the indexes’ declines, reflecting pressure that was not evenly spread across the market. Brent crude rose 4% to $113.17 a barrel after touching a five-month high, amid uncertainty over how the war with Iran would affect the global energy sector’s return to normal. The session thus saw technology pressures coincide with other moves in oil and bonds, with volatility extending beyond AI companies.
Investor concerns centered on the scale of AI projects’ capital costs, at a time when returns may be delayed. Reuters reported that higher borrowing costs could lead technology companies such as Meta to sell billions of dollars in shares to fund expansion. Meta raised the lower end of its annual spending forecast to $135 billion from $130 billion, while keeping the upper end at $145 billion. In the third quarter, the company recorded negative free cash flow of $2.12 billion, compared with positive cash flow of $10.63 billion in the same quarter a year earlier. Reuters described this as the company’s first cash burn in more than a decade, while the AP said Meta plans to create a new class of shares to raise money for AI investments and other expenses.
Analyst Matthew Maley said the selloff began as investors questioned the returns on spending, adding: "It’s becoming increasingly clear to people that it’s going to take a lot longer." Reuters projected that capital spending by hyperscalers would exceed $800 billion during 2026, as investors assess the sustainability of that spending and the returns it will generate. By contrast, trader Joe Saluzzi said money was moving into Treasury bonds and away from technology and AI stocks, describing it as a "traditional flight to safety." The yield on the 10-year U.S. Treasury fell to 4.97% on October 22, from 5.13% late Wednesday, as investors moved into bonds. These moves show a divergence between falling stocks and yields and rising oil during the same session.
Investors were looking ahead to results from Alphabet and Microsoft the following Wednesday and Amazon on Thursday, alongside the Federal Reserve meeting on Wednesday. Reuters said those dates could test the market’s faltering recovery, while third-quarter earnings for S&P 500 companies were on track for growth of more than 32% year over year after more than 100 companies had reported results. Federal funds futures, according to LSEG data cited by Reuters on Thursday evening, showed a 5% probability of a rate hike at the October meeting, compared with an 80% probability of a hike in December. The Fed scheduled its meeting for October 27 and 28, with a press conference on October 28. An analyst quoted by Reuters said company results would determine whether the technology-stock decline was a "buying opportunity or a deeper correction awaits the market."