{
  "id": 16124287,
  "title": "US stocks fall as AI doubts ignite tech selloff",
  "url": "https://urgent.news/2026/10/22/us-stocks-fall-as-ai-doubts-ignite-tech-selloff",
  "topic": "ai",
  "section": "AI",
  "published": "2026-10-22T23:22:18.000Z",
  "source": {
    "name": "RTHK News - Finance",
    "slug": "rthk-news-finance",
    "url": "https://news.rthk.hk/rthk/en/component/k2/1874998-20261023.htm"
  },
  "original_language": "en",
  "account": "U.S. equities plunged on Thursday, with the Nasdaq experiencing its steepest single-day decline since early June, as a series of high-profile corporate earnings reports sparked renewed concerns about the rapid spending on artificial intelligence technologies. The S&P 500 closed in the red, while the tech-focused Nasdaq fell by 2.6 percent after a string of notable AI-related earnings releases. The Dow Jones Industrial Average managed to post a slight gain shortly before markets closed. Meta Platforms, the parent company of Facebook, released results that surpassed analyst projections, but its stock plummeted 7 percent following the announcement of its first cash outflow in over a decade to fund AI-related expenses and a forthcoming two-for-one share split to raise capital. Tesla's shares dropped 3.1 percent despite the company reporting unexpectedly positive free cash flow for the quarter and reducing its capital spending plans for 2026. The Philadelphia Semiconductor Index, a key driver of the current market rally, plummeted 6.7 percent, marking its largest daily percentage drop since June 23. Paul Nolte, a senior wealth adviser and market strategist at Murphy & Sylvest, remarked, \"It's been a great day on Wall Street, but the only area really struggling is technology, which has been the market's star performer until about June.\" Investors are beginning to recognize potential weaknesses in the AI narrative, which is negatively impacting indices heavily weighted towards technology sectors. Geopolitical tensions, including new strikes by Iran-backed Houthis against Saudi targets, pushed crude oil prices to a five-month high, raising fears of sustained inflation and prompting the U.S. Federal Reserve to maintain its interest rate hikes. Meanwhile, U.S. jobless claims remained near multi-decade lows, offering the Federal Reserve a clearer focus on tackling inflation. Financial markets currently anticipate a further 25 basis point rate increase by the end of the year. On the earnings front, 111 companies in the S&P 500 have reported for the third quarter, with 83 percent exceeding analyst expectations, according to LSEG data. Despite some optimism, Procter & Gamble warned of rising cost pressures affecting profitability, yet still beat earnings forecasts, causing its stock to surge 5.6 percent. Blackstone saw an 8.4 percent increase after predicting that widening credit spreads on AI-related debt could lead to higher returns. Lockheed Martin also climbed 7 percent following the aerospace and defense firm's upward revision of annual sales and profit expectations. Spotify gained 11.1 percent after forecasting fourth-quarter profits above Wall Street expectations, anticipating growth from its AI-driven features aimed at attracting more users. Chipmakers Intel, AMD, SanDisk, and Marvell were among those heavily impacted by the broader semiconductor sell-off, with their stocks falling more than 8 percent.",
  "summary": "US stocks tumbled on Thursday and the Nasdaq posted its steepest daily drop since early June as a batch of high-profile earnings reports ignited fresh fears about the AI spending race. The S&P 500 ended deep in negative territory. But the tech-laden Nasdaq, dragged down by microchips, suffered a steeper loss, falling 2.6 percent in the wake of a spate of high-profile AI-related earnings results.…",
  "key_points": [
    "Nasdaq drops 2.6% amid AI concerns after earnings reports",
    "Meta Platforms' stock falls 7% over AI spending and split",
    "Tech-heavy indexes suffer largest daily decline since June"
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "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."
}