U.S. technology shares sank Thursday, Oct. 22, as investors questioned the payoff from heavy artificial intelligence spending, sending the PHLX Semiconductor Index down 6.7% and the Nasdaq Composite 2.6%.
The Associated Press reported that the S&P 500 lost 1.2% to 7,663.43, while the Dow Jones Industrial Average added 11.89 points to 52,867.98. Nasdaq data distributed through FRED put the Composite at 26,008.86 and the semiconductor index at 10,731.98. AP also reported that more U.S. stocks advanced than declined, indicating that technology shares accounted for much of the pressure. Reuters said the semiconductor index had not posted a steeper daily percentage fall since June 23.
Oil prices rose in an intraday update from Reuters. Brent futures were at $112.33 a barrel, up 3.2%, and West Texas Intermediate (WTI) crude was at $99.29, up 2.2%, at 1:05 p.m. ET (17:05 UTC). Reuters attributed supply concerns to Houthi attacks in Saudi Arabia. The U.S. Treasury's daily par-yield curve showed the 10-year yield at 4.96% on Oct. 22, compared with 5.13% one session earlier.
Meta reported third-quarter capital expenditures of $34.91 billion, including principal payments on finance leases. It forecast spending of $135 billion to $145 billion in 2026, up from a previous range of $130 billion to $145 billion at the lower end. Revenue reached $64.60 billion, a 26% increase from a year earlier. Meta said its AI investments were helping advertising revenue through stronger engagement and recommendations, while returns on those projects would take longer than returns from its core business.
Angelo Kourkafas, senior global strategist at Edward Jones, wrote in a research note quoted by AP that investors were weighing AI infrastructure costs against uncertainty over when those investments might generate returns. CME Group said its FedWatch Tool assigned a 67% likelihood to a rate increase in December in commentary published Oct. 22.
The Federal Open Market Committee (FOMC) is due to meet Oct. 27-28. Its statement is scheduled for 2 p.m. ET (18:00 UTC) on Oct. 28, followed by a news conference at 2:30 p.m. ET (18:30 UTC). The Bureau of Economic Analysis (BEA) has set its September Personal Income and Outlays report, which includes the PCE price index, for Oct. 29 at 8:30 a.m. ET (12:30 UTC).
