The Wall Street Wrap: October 22, 2026

The Nasdaq drops 2.6% in its worst day since June as AI spending fears hit Meta, chips, and power stocks, while staples and utilities lead and Brent tops $113

Welcome to Wall Street Wrap, your quick end-of-day rundown of what moved US markets today, plus what's shaping global sentiment overnight.

MARKETS TODAY

US stocks tumbled on Thursday as fresh doubts over AI spending, sparked by Meta's and Tesla's earnings, and a jump in oil prices hit technology shares, with the Nasdaq Composite falling 2.60% to 26,008.859 in its steepest daily drop since June and the S&P 500 losing 1.21% to 7,663.43. The Nasdaq 100 fell 2.90% to 28,958.688, while the Dow Jones Industrial Average edged up 0.02% to 52,867.98, the Russell 2000 gained 0.07% to 2,782.912, and the VIX rose 13.97% to 19.01. Six of the 11 S&P 500 sectors rose, led by consumer staples at 3.13% and utilities at 1.97%, while communication services fell 3.06% and information technology 3.04%. Meta fell 6.98% after its first cash outflow in more than a decade and Lam Research lost 11.756%, while Procter & Gamble rose 5.579% on better-than-expected results and Moderna fell 17.566%. Weekly jobless claims fell to 194,000. The 10-year Treasury yield fell 19.1 basis points to 4.955%, crude oil rose 1.93% to 99.028, Brent gained 3.69% to 112.835, and gold fell 2.87% to 4,022.29.

ANALYTICAL VIEW

AI spending fears came back with force. Meta fell 6.98% after posting negative free cash flow of $2.12 billion, raising the floor of its 2026 capital spending range, and announcing a new class of non-voting stock, while Tesla lost 3.08% after cutting its 2026 capital spending forecast to about $20 billion from more than $25 billion. The Philadelphia Semiconductor Index plunged and has now lost about a quarter of its value since its June 22 record close. Lam Research fell 11.756%, Lumentum 11.539%, Flex 11.084%, and KLA 9.545%, Nvidia lost 4.397%, and AI power and neocloud names sold off, with GE Vernova down 10.638%, Vistra 9.805%, and CoreWeave 10.062%. The Nasdaq 100's 2.90% decline far outpaced the Dow's flat session, and the decline in information technology and communication services left the S&P 500 down 1.21%.

Money moved into defensive sectors and bonds. Consumer staples rose 3.13% and utilities 1.97%, health care gained 1.39%, and financials 1.15%, while the 10-year Treasury yield fell to 4.955%, its lowest level in almost a month. Brent settled at $113.17, its highest since May 4, after The New York Times reported that US and Israeli forces have drawn up plans for renewed strikes on Iran after the November midterm elections, yet energy still fell 0.78%. Weekly jobless claims of 194,000 kept the labor market looking stable, which leaves the Federal Reserve free to focus on inflation, and economists expect it to hold at its meeting next week.

What could change the picture: Whether Friday's flash PMIs and results from American Express and SLB ease worries over AI spending and energy costs, whether Brent holds above $112 with Iran strike risk building, and whether the 10-year yield stays near 4.96% ahead of the Fed's October 27 to 28 meeting.

SECTOR PERFORMANCE

WINNERS & LOSERS

Top 5 Gainers (across S&P, Nasdaq, Dow):

• Allegion plc (NYSE:ALLE): +11.019%
• Roper Technologies, Inc. (NASDAQ:ROP): +9.727%
• Lennar Corporation (NYSE:LEN): +8.687%
• Blackstone Inc. (NYSE:BX): +8.378%
• General Mills, Inc. (NYSE:GIS): +8.014%

Top 5 Decliners:

• Moderna, Inc. (NASDAQ:MRNA): -17.566%
• Coherent Corp. (NYSE:COHR): -12.508%
• Lam Research Corporation (NASDAQ:LRCX): -11.756%
• Lumentum Holdings Inc. (NASDAQ:LITE): -11.539%
• Flex Ltd. (NASDAQ:FLEX): -11.084%

Note: Blackstone rose after saying widening credit spreads on AI-related debt could present an opportunity, Moderna fell after detailed melanoma vaccine data triggered "sell-the-news" selling, and Lam Research fell on supply-constraint comments and the broader semiconductor selloff, which also weighed on Coherent, Lumentum, and Flex; no specific cause was provided for the moves in Allegion, Roper, Lennar, or General Mills.

AFTER-HOURS MOVERS

Gainers:

• Omnicom Group Inc. (NYSE:OMC), +2.96% after hours: Shares rose to $85.00 after third-quarter adjusted earnings of $2.73 a share beat the $2.67 estimate and revenue of $6.42 billion topped the $6.21 billion expected, with revenue growth reflecting the Interpublic combination. The stock had closed 2.56% higher at $82.56.
• Newmont Corporation (NYSE:NEM), +1.19% after hours: Shares rose to $115.47 after third-quarter adjusted earnings of $2.20 a share beat the $1.96 estimate and sales of $6.36 billion topped the $6.27 billion expected. Free cash flow was $1.91 billion, and the company said it remains on track to meet full-year production guidance and improved its cost outlook. The stock had closed 2.62% lower at $114.11.
• Western Digital Corporation (NASDAQ:WDC), +1.04% after hours: Shares rose to $357.87 after fiscal first-quarter adjusted earnings of $4.64 a share beat the $4.11 estimate and revenue of $4.38 billion topped the $4.14 billion expected. Fiscal second-quarter guidance of $5.60 to $6.00 in adjusted earnings and $5.0 billion to $5.2 billion in revenue was well above consensus of about $4.84 and $4.57 billion, and the company raised its quarterly dividend 17% to $0.175. The stock had closed 6.43% lower at $354.19.

Decliners:

• Deckers Outdoor Corporation (NYSE:DECK), -8.29% after hours: Shares fell to $78.21 after fiscal second-quarter revenue of $1.48 billion trailed the $1.51 billion expected, even though adjusted earnings of $2.03 a share beat the $1.79 estimate. Reported diluted earnings of $2.31 included a $0.28 benefit from tariff refunds, and the company raised its fiscal 2027 earnings guidance to $7.80 to $7.95, including about $0.52 of tariff refunds, while its revenue guidance of $5.70 billion to $5.725 billion fell below the $5.878 billion consensus. HOKA sales rose 6.8% to $677.2 million and UGG 3.5% to $786.4 million. The stock had closed 0.25% lower at $85.28.
• SS&C Technologies Holdings, Inc. (NASDAQ:SSNC), -7.36% after hours: Shares fell to $82.95 even though third-quarter adjusted earnings of $1.78 a share beat the $1.77 estimate and revenue of $1.69 billion was in line. Adjusted organic revenue growth was 5.2%, against 7.6% in the second quarter, and the sources do not confirm the cause of the decline. The stock had closed 2.81% higher at $89.54.
• Comfort Systems USA, Inc. (NYSE:FIX), -6.30% after hours: Shares fell to $1,198.76 even though third-quarter earnings of $13.91 a share beat the $12.85 estimate and revenue of $3.77 billion, up 53.7%, topped the $3.40 billion expected. Backlog reached $17.81 billion, up 90.0% from a year earlier, and the sources do not confirm the cause of the decline. The stock had closed 8.70% lower at $1,279.37.
• VeriSign, Inc. (NASDAQ:VRSN), -5.00% after hours: Shares fell to $289.36 after third-quarter earnings of $2.35 a share missed the $2.46 estimate on revenue of $443.0 million, against $440.58 million expected. The quarter included a $7.5 million pre-tax loss on assets held for sale that cut earnings by $0.06, and the final .com and .net renewal rate was 75.2%, against 75.5% a year earlier. The stock had closed 0.87% lower at $304.59.
• Bloom Energy Corporation (NYSE:BE), -4.72% after hours: Shares fell to $207.50 even though third-quarter adjusted earnings of $0.94 a share beat the $0.69 estimate and revenue of $1.24 billion topped the $1.07 billion expected. The company raised its 2026 outlook to $4.4 billion to $4.6 billion in revenue (prior $3.9 billion to $4.2 billion) and $3.10 to $3.40 in adjusted earnings (prior $2.55 to $2.85). The stock had closed 8.70% lower at $217.77.

COMMODITIES & RATES

US TREASURY YIELDS

TOP STORIES: US

Meta falls 6.98% as AI spending pushes free cash flow negative. Free cash flow was negative $2.12 billion in the third quarter, the company's first cash outflow in more than a decade, and Meta raised the floor of its 2026 capital expenditure range to $135 billion to $145 billion from $130 billion. The spread on its five-year credit default swaps reached an all-time high, a sign of growing credit concern as it leans deeper into AI spending. Revenue rose 26% to $64.60 billion against the $63.37 billion expected, while earnings of $3.83 a share were not clearly comparable with the $5.75 analysts expected. Meta also said it would create a new class of non-voting Class C stock to "provide Meta the ability to finance its growth," and its filing said CEO Mark Zuckerberg could leave California if the "California Wealth Tax" passes.

Chip and AI infrastructure stocks plunge, and the Nasdaq posts its steepest drop since June. The Philadelphia Semiconductor Index, which has driven much of this bull market, has lost about a quarter of its value since its June 22 record close, with Lam Research down 11.756%, Lumentum 11.539%, Flex 11.084%, and Western Digital 6.43%. AI power names fell too, with GE Vernova down 10.638%, Bloom Energy 8.70%, and Vistra 9.805%, and Quanta Services, Talen Energy, and Eaton also lower. The selloff came even as 83% of the 111 S&P 500 companies that have reported beat estimates, according to LSEG, and Blackstone rose after saying widening credit spreads on AI-related debt could offer a chance to lock in higher returns.

CoreWeave falls 10.1% as Nvidia's Huang says neocloud demand is "off the charts" but capital is scarce. The stock closed at $55.60 and is down about 35% this month, while the spread on its five-year credit default swaps stands at 1,115 basis points and its unsecured debt yields about 15%. Nebius is down 32% this month and IREN 39%, and CoreWeave has about $20.7 billion in debt coming due through 2030. Fixed income sources said the high-yield debt market is effectively on hold until after the midterm elections in two weeks, and analysts expect CoreWeave's negative free cash flow to swell to $10.1 billion in the third quarter, which it reports next month.

Procter & Gamble jumps 5.6% on a first-quarter beat but warns of a bigger commodity-cost hit. Adjusted earnings of $2.00 a share beat the $1.88 estimate and net sales rose 4% to $23.28 billion, against $22.80 billion expected, with volumes up 2.4% and prices up about 0.4%. The company now expects higher costs to reduce fiscal 2027 profit by about $1.4 billion, up from $1 billion, and kept its organic sales growth target of 1% to 3% and core earnings of roughly $7 a share. Core operating margin fell 80 basis points despite 250 basis points of productivity savings.

Moderna drops 17.6% on "sell-the-news" selling after detailed melanoma vaccine data. The data showed its personalized vaccine intismeran, combined with Merck's Keytruda, reduced the risk of recurrence or death by 42% and of distant metastasis or death by 38% against Keytruda alone, in a late-stage trial. The companies released the results after they leaked on an oncology website, and the stock, which had risen more than 500% this year, closed at $202.63 after falling more than 25% earlier in the day. Merck lost 1.761%, overall survival data are not yet mature, and the full results will be presented Saturday at the European Society for Medical Oncology meeting in Madrid.

Also today: Tesla fell 3.08% after cutting its 2026 capital spending forecast to about $20 billion from more than $25 billion, which led to a surprise positive free cash flow; Lockheed Martin rose 6.963% after announcing a framework deal to sell the Pentagon at least 850 F-35 jets over 10 years, worth at least $78.2 billion, and raising its 2026 sales forecast to $80 billion to $82 billion; Spotify jumped 11.10% on a fourth-quarter operating income guide above estimates and 306 million subscribers; Union Pacific beat third-quarter estimates with adjusted earnings of $3.53 a share against $3.47 but flagged a 140 basis point hit from fuel costs; Delta, Southwest, and American lowered their 2026 earnings forecasts as fuel costs outpaced fare increases; Rollins closed 5.55% higher at $35.31 despite third-quarter earnings of $0.33 a share against $0.34 expected; weekly jobless claims fell 6,000 to 194,000, the sixth straight week at or below 200,000; Elon Musk invested about $1 billion in Skydance, according to a person familiar with the matter; a shareholder of Circle Internet Group sued President Donald Trump and World Liberty Financial over alleged foreign emoluments, which the White House called "frivolous"; and nonprofit evaluators METR and Redwood Research said a pilot review of OpenAI's internal monitoring system found several vulnerabilities, which OpenAI said it has patched.

TOP STORIES: GLOBAL

Brent crude tops $113, its highest since May, as Trump hints at action on Iran. Brent futures gained 4% to settle at $113.17 a barrel and West Texas Intermediate rose 2.4% to $99.47, after The New York Times reported that the US and Israeli militaries have drawn up plans for renewed strikes on Iran after the midterm elections. President Donald Trump said the US is not negotiating with Iran and that something will "happen fairly soon." The US ordered non-emergency government employees to leave Saudi Arabia as Houthi attacks escalate, including a strike on King Fahd International Airport in Dammam that killed at least two people, and Saudi Aramco told staff to evacuate its Dhahran headquarters.

Asian stocks tumble, led by a sell-off in technology shares. The MSCI All Country Asia Pacific ex-Japan Index fell over 2% to its lowest level in nearly three months, putting it on course for a fourth consecutive weekly decline. Japan's Nikkei 225 reversed earlier gains to decline 2.6% to 62,907.84, while the Topix lost 1.1% to 3,997.5, and South Korea's Kospi was down 3.52% to 5,533.77, while the small-cap Kosdaq was down 3.6% at 764.1. China's CSI 300 index shed 1.8% to 4,036.30, while Hong Kong's Hang Seng Index declined 3% in its last hour of trade.

The world's largest wealth fund posts a $30 billion loss after bond market turbulence. Norway's sovereign wealth fund said its third-quarter accounting return was a loss of 278 billion kroner, or $29.7 billion, as rising interest rates cut the value of its bond holdings. Its fixed income investments returned negative 3.5%, while equities, 72% of the portfolio, returned 0.5%, and the quarter saw a global bond market rout as major central banks, including the US Federal Reserve, began rate-hiking cycles. The fund, valued at about $2.3 trillion, said it wants to reduce its US Treasury holdings.

MANAGEMENT & FED SPEAK

Jensen Huang, Chief Executive Officer, Nvidia, on neocloud demand and memory:

Huang said in an interview that demand for neoclouds is "off the charts," but that "What is missing in the middle is the working capital to fuel that growth." On memory, he said he sees no glut by 2029 because "you can always use more of it," and he said US export rules pushed China to speed up its own chip push, which "definitely accelerated because of all the regulations."

Donald Trump, President, United States, on Iran:

Trump told reporters the US is not negotiating with Iran and that "something one way or the other" will "happen fairly soon." Asked about timing, he said "Most people seem to think it's after the election."

Andre Schulten, Chief Financial Officer, Procter & Gamble, on costs:

Schulten said commodity pressures are expected to increase over the next two quarters and that progress will not be a "straight line," adding that the company did not want to "get ahead of ourselves." He said 3% growth would be "healthy" in the current environment.

Michael Intrator, Chief Executive Officer, CoreWeave, on financing:

In a memo to employees, Intrator wrote, "Our financing model combines infrastructure-backed borrowing, corporate debt, equity, and customer prepayments." He added that the company has "additional flexibility to raise equity over time."

Jerry Gahlhoff Jr., President and Chief Executive Officer, Rollins, on the quarter:

Gahlhoff said "We are disappointed with our third quarter performance" and that the company is acting with urgency to address the challenges, citing difficulty attracting residential customers. Revenue rose 6.2% to $1.09 billion, against $1.11 billion expected.

CORPORATE ACTIONS & EARNINGS CALENDAR

Top Ex-Dividend Companies for Friday, October 23:

Earnings Reported After the Close (Thursday, October 22):

Upcoming Earnings (Friday, October 23):

Economic Calendar (Friday, October 23):

That's the wrap for today! Attention turns to Friday's flash PMIs, results from American Express and SLB, how Deckers, SS&C, and Comfort Systems trade at the open, and whether the 10-year Treasury yield holds near 4.96% with the Fed's October meeting less than a week away.