AI funding fears hit Nasdaq 2.6% as bonds rally and oil nears $100

The Nasdaq fell 2.6% to 26,008.86 and the S&P 500 slid 1.21% as Meta's roughly $810 billion in future commitments and weak chip-gear guidance spooked investors, while the 10-year Treasury yield posted its biggest one-day drop in over two years.

Deepakshi Sharma

Kristal Research

23 Oct2 min

Key takeaways — AI summary

The Nasdaq Composite fell 2.6% to 26,008.86 and the S&P 500 dropped 1.21% to 7,663.43, though the Dow finished flat and the equal-weight S&P 500 rose 0.7% — the selling targeted AI, not the whole market, with the semiconductor group down 6.7%.
Meta posted record sales of $64.6 billion but gave no 2027 profit target, and filings showed about $810 billion in leases and commitments; the stock fell 7.0%, shedding over $120 billion in value, and the cost of insuring its debt hit a record high.
Lam Research fell 11.8% on soft December guidance, Nvidia dropped 4.3% after Jensen Huang said AI cloud demand is 'off the charts' but 'there's a scarcity of capital,' and neocloud CoreWeave fell 10.1%.
The 10-year Treasury yield fell about 0.17 points to 4.95%, its biggest one-day drop in more than two years, even as Brent crude jumped 4% to $113.17 on reported US-Israeli plans to strike Iran after the November 3 midterms; gold slipped to near $4,005.
Money rotated into steadier names — consumer staples rose 3.1% and utilities 2% — with Spotify up 11.1% and Blackstone up 7.8%; traders now see almost no chance of a Fed rate hike on October 28.

Generated by Kristal AI · reviewed by the research desk

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