US tech stocks tumble on AI spending fears as Nasdaq falls 2.6%

Briefing by News4U · First published 2026-10-23 05:35:51 UTC

Wall Street indices fell sharply Thursday after Meta raised its AI capital-spending forecast to $135-145 billion, stoking worries over sustainability.

US tech stocks fell sharply Thursday as investors questioned the sustainability of soaring AI spending. The Nasdaq Composite dropped 2.6 percent, its steepest decline since June 5, while the S&P 500 slid 1.21 percent, its largest drop since July 29. [1] [2] [3] [4] [5] [6]

Meta slumped nearly 7 percent after lifting its 2026 capital-spending forecast to $135-145 billion. Amazon fell 4.6 percent, Nvidia 4.4 percent, Tesla and Alphabet each 3.1 percent, and Microsoft 2.2 percent. [1] [6]

Sources

1. Stocks retreat as tech mood sours, oil prices jump

   RTHK Finance · 2026-10-22 14:40:03 UTC · Excerpt

2. Meta’s Hunt for AI Capital Strikes a Raw Nerve on Wall Street

   WSJ Markets · 2026-10-22 20:04:00 UTC · Summary only

3. Stocks See Steepest Decline in Months Amid A.I. Worries

   NY Times · 2026-10-22 20:11:05 UTC · Summary only

4. U.S. Tech Stocks Drop on AI Spending Concerns

   WSJ Markets · 2026-10-22 20:20:00 UTC · Summary only

5. Nasdaq Drops as Doubts Grow Over AI Spending

   Bloomberg · 2026-10-23 00:17:42 UTC · Summary only

6. US tech stocks tumble as investors fret over AI spending

   Al Jazeera · 2026-10-23 03:13:13 UTC · Full text

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