Update: Nasdaq Marks Worst Day Since June as AI Spending Worries Resurface

04:45 PM EDT, 10/22/2026 (MT Newswires) -- (Updates with market moves at the end of the day, and other changes, if any.) The Nasdaq Composite declined the most in more than four months on Thursday as fresh concerns over artificial intelligence-related corporate spending triggered a technology sell-off. The tech-heavy Nasdaq slid 2.6% to close at 26,008.86, its biggest one-day percentage drop since June 5. The S&P 500 shed 1.2% to settle at 7,663.43, snapping a three-day winning streak. The Dow Jones Industrial Average ended little changed at 52,867.98. Among sectors, tech and communication services led the laggards with a 3% decline each, while consumer staples paced the gainers. Meta Platforms (META) shares tumbled 7%. The Facebook parent expects capital expenditures in a range of $135 billion to $145 billion, reflecting a higher bottom end versus the previous guidance of $130 billion. Meta vowed to continue investing aggressively to support its core business and AI initiatives. Its quarterly free cash flow turned negative, Saxo Bank said in a report Thursday. "The investor lesson: a profitable core business can finance ambitious projects, but growing revenue does not automatically translate into growing cash for shareholders," Saxo Bank said. "Meta faces the risk that AI infrastructure costs grow faster than the profits they generate." Tesla's (TSLA) stock fell 3.1%. The Elon Musk-led company's disappointing third-quarter operating margin reflects a ramp in AI investments that could weigh on the electric vehicle manufacturer's near-term earnings, Truist Securities said in note on Wednesday. Shares of chipmaking giant Nvidia (NVDA) slumped 4.4%, among the worst performers on the Dow. Other big tech names also fell, including Alphabet (GOOG, GOOGL) and Microsoft (MSFT). Procter & Gamble (PG) jumped 5.6%, the biggest gain on the Dow. The consumer goods giant lifted its full-year sales growth outlook to reflect an acquisition, while its fiscal first-quarter earnings unexpectedly increased year over year. Moderna's (MRNA) shares plunged nearly 18%, the biggest decline on the S&P 500, following a potential leak of data related to its personalized melanoma vaccine developed with Merck (MRK), Bloomberg reported. Merck dropped 1.8%. Treasury yields slumped, with the two-year rate retreating by 16.2 basis points to 4.66% and the 10-year rate off 17.2 basis points to 4.97%. US bond yields "appear to be getting some relief as capital seemingly seeks a traditional safe haven amid international uncertainty, including escalating unease in France as well as renewed concerns regarding an AI-related slowdown," Stifel said in a Thursday note. West Texas Intermediate crude oil was up 2.2% at $99.29 a barrel in Thursday late-afternoon trade, while Brent climbed 3.8% to $112.96. The US and Israel have drawn up specific plans to resume military operations against Iran after the midterm elections in November, The New York Times reported Wednesday, citing sources. The targets are likely to include Iran's energy infrastructure, nuclear facilities, and missile and drone assets, according to the report. The US has ordered non-emergency government employees and their families to leave Saudi Arabia amid its ongoing conflict with Yemen's Iran-aligned Houthi rebels, CNBC reported. "The sizeable risk premium currently embedded in prices is unlikely to fade until clear signs of de-escalation emerge and reassure investors that regional supply will remain uninterrupted," ING Bank said in report Thursday. Spot gold slid 2.8% to $4,023.90 per troy ounce, while silver lost 5.4% to $54.62 per ounce.