{
  "id": 16076022,
  "title": "Wall Street sinks as Nasdaq falls over 2% on AI cost worries",
  "url": "https://urgent.news/2026/10/22/wall-street-sinks-as-nasdaq-falls-over-2-on-ai-cost-worries",
  "topic": "ai",
  "section": "AI",
  "published": "2026-10-22T17:22:03.000Z",
  "source": {
    "name": "The Korea Times",
    "slug": "the-korea-times-koreatimes",
    "url": "https://www.koreatimes.co.kr/world/20261023/wall-street-sinks-as-nasdaq-falls-over-2-on-ai-cost-worries"
  },
  "original_language": "en",
  "account": "The Nasdaq, a tech-heavy stock market index, experienced a significant drop of over 2% on Thursday, as growth stocks faltered due to growing concerns surrounding artificial intelligence (AI). The decline in the Nasdaq was primarily driven by disappointing earnings reports from major tech companies Tesla and Meta, which failed to alleviate investor worries about the high costs associated with AI development.\n\nMeta, the social media giant, saw its shares plunge by 5.2% after announcing a new class of non-voting shares aimed at funding its expensive AI initiatives. Despite Meta reporting stronger-than-expected quarterly revenue and sharing optimistic sales forecasts for the fourth quarter, the market reacted negatively to the news, reflecting growing apprehension about the financial implications of AI expansion.\n\nThe market's downturn marked a stark contrast to the previous day's rally, which was fueled by positive earnings from SpaceX and Super Micro, two prominent players in the AI sector. However, this initial optimism quickly dissipated as investors began to scrutinize the substantial capital investments required to build AI infrastructure and questioned the timeline for potential returns on such significant expenditures.\n\nThe market's decline had a profound impact on various sectors, with the Philadelphia Semiconductor Exchange Index (S&P 500 Semiconductors) facing a potential loss of more than $616 billion in market value. Additionally, the Nasdaq-100, a key index comprising 100 of the largest non-financial companies listed on the Nasdaq Stock Market, was on track to lose nearly $1 trillion in value. The semiconductor sector, in particular, plummeted by 5.6%, reaching its lowest level since July 29, as investors reassessed the long-term prospects of AI-driven technologies and their potential impact on traditional industries.",
  "summary": "The tech-heavy Nasdaq slid more than 2 percent on Thursday as growth stocks weakened after earnings from mega-caps Tesla and Meta did little to address AI-related concerns, with a recovery in oil prices further adding to market unease. Meta slipped 5.2 percent after the social media giant unveiled a new class of non-voting shares to help fund its costly AI expansion. The decline came despite…",
  "key_points": [
    "Nasdaq falls over 2% due to AI cost concerns",
    "Meta shares plunge 5.2% over AI funding shares",
    "Semiconductor sector drops 5.6% amid AI investment fears"
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "CNBC",
        "title": "Nasdaq falls more than 2% for worst day since June as AI spending woes, oil prices spark sell-off: Live updates",
        "url": "https://urgent.news/2026/10/22/nasdaq-falls-more-than-2-for-worst-day-since-june-as-ai-spending-woes",
        "published": "2026-10-22T20:04:26.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}