The Nasdaq fell 2.60% and the S&P 500 1.21%, yet the Dow held at +0.02%. The split is simple: technology (XLK) collapsed 3.29% while money hid in consumer staples (+2.55%) and utilities (+2.36%). The chip rebound sparked by SpaceX's results the day before vanished within a day, with AMD down 8.10%, Intel 8.04% and Micron 6.26%. Meta fell 6.98% even though revenue topped forecasts, a sign the market now cares less about the size of AI investment than about who bears its cost and how. With the semiconductor index more than 26% below its June high, prices may have become cheaper, but while rebounds fail to last even a day it is hard to call a bottom. Until the October 28 FOMC and next week's Microsoft and Alphabet earnings, a cautious approach to tech seems right, and we lean bearish.
📊 Top Movers
🧭 Sector Performance
🇰🇷 Korean Investor Perspective
The most direct news for Korean investors is the chip plunge. Micron fell 6.26%, AMD 8.10%, Nvidia 4.40% and Broadcom 4.31%, a warning signal for memory and chip names such as Samsung Electronics and SK Hynix. Micron's sharp drop to $856.49 in particular shows how expectations for the memory cycle could waver. QQQ fell 2.86% and SPY 1.18%, while the 3x leveraged TQQQ dropped 8.52% in a day. USD/KRW rose 1.86 won to 1,325.80. For unhedged holders a weaker won trims dollar-asset losses slightly, but only by a small margin. If you hold leveraged ETFs, review your exposure with the possibility of a gap down on Friday in mind.
📊 Market Overview
US stocks ended sharply lower on Thursday, October 22, led by technology. The Nasdaq Composite fell 694.00 points (-2.60%) to 26,008.86 and the S&P 500 lost 93.74 points (-1.21%) to 7,663.43. The Dow Jones Industrial Average, by contrast, gained 11.89 points (+0.02%) to 52,867.98, essentially flat. With only the tech-heavy Nasdaq falling hard, the character of the session was clear.
The AI chip rebound sparked by SpaceX's results the day before was reversed within a day. Of the 11 sectors, technology (XLK) was by far the weakest at -3.29%, followed by communication services (-1.42%), energy (-0.87%) and consumer discretionary (-0.42%). Consumer staples (+2.55%), utilities (+2.36%), financials (+1.09%), materials (+0.90%) and health care (+0.82%) rose, a classic risk-off rotation from growth into defensives. Among ETFs, QQQ fell 2.86%, SPY 1.18% and the 3x leveraged TQQQ 8.52%.
🔑 Key Issues
1. Meta -6.98% as AI spending worries return
Meta (META) fell 6.98% to $648.85. Per press reports, third-quarter revenue of $64.6 billion (+26%) beat the $63.3 billion forecast, but the cash outflow from expanded AI investment and skepticism about capex guidance weighed on the stock. A stock split and a plan to issue non-voting shares were also reported, as was a $25 billion fine in Mexico, though the latter rests on a single source so we do not treat it as settled. Good results were outweighed by the cost burden.
2. Semiconductors and AI infrastructure fall together
AMD fell 8.10% to $507.93, Intel 8.04% to $85.49, Arm 7.28%, Micron 6.26% to $856.49, Broadcom 4.31% and Nvidia 4.40% to $212.21. Press reports said Lam Research dropped about 9% and CoreWeave about 10%, with Lam's guidance disappointing after the previous close. The Philadelphia Semiconductor Index is more than 26% below its June record. We found no report explaining the individual declines at Intel and AMD, so we assign no cause. Still, the failure of the previous day's bounce confirms the view that it was technical.
3. Tesla -3.08% despite a beat
Tesla (TSLA) fell 3.08% to $374.58. Adjusted EPS of $0.48 beat the $0.44 forecast, but reports said lower 2026 capex and higher planned spending for 2027–2028 weighed. SpaceX (SPCX) gave back more than half of the prior day's gain, closing at $144.75, down 9.14%, the biggest drop among the stocks we track.
4. Moderna down about 20%
Per press reports, Moderna plunged more than 20% on leaked cancer vaccine trial results. Details of the melanoma vaccine study are due Saturday at the European Society for Medical Oncology (ESMO) conference.
5. Oil up, Treasury yields down
WTI rose 2.01% to $99.10, and reports said Brent topped $111, the highest since May. Cited backdrops included reports that the US and Israel are preparing renewed strikes on Iran after the November 3 midterms and attacks on a Saudi airport and an Aramco oil field. In the risk-off move, money flowed into bonds and the 10-year yield fell 0.16 percentage points to 4.95% on Yahoo's data. Gold fell 2.66% to $4,039.8.
6. Solid jobs data
Weekly initial jobless claims fell to 194,000, a three-month low and below the 200,000 forecast. Layoffs remain low, which hardly raises rate-cut hopes.
📊 Sector Performance
| Sector | Change | Main driver |
|---|---|---|
| Consumer Staples | +2.55% | P&G +3.94%, Coca-Cola +2.87%, Walmart +2.77% |
| Utilities | +2.36% | NextEra +3.85%, Southern +3.43%, Duke +3.35% |
| Financials | +1.09% | American Express +2.15%, Morgan Stanley +1.98% |
| Materials | +0.90% | Defensive rotation |
| Health Care | +0.82% | J&J +3.18%, Amgen +1.90% (Moderna plunged) |
| Real Estate | +0.33% | Lower yields |
| Industrials | -0.04% | Honeywell +2.34%, Caterpillar -2.92% |
| Consumer Discretionary | -0.42% | Amazon -4.57%, Tesla -3.08%, Home Depot +4.00% |
| Energy | -0.87% | Mixed by stock despite higher oil |
| Communication Services | -1.42% | Meta -6.98%, Alphabet -3.15% |
| Technology | -3.29% | AMD -8.10%, Nvidia -4.40%, Microsoft -2.23% |
🌍 Global Markets
- Europe STOXX 600: Closed at 637.74, below the prior day's 644.49.
- US Dollar Index (DXY): Fell 0.10% to 101.63.
- US 10-year Treasury yield: Fell 0.16 percentage points to 4.95% on Yahoo's data. Some reports put it near 5.02% intraday, so the figure depends on timing.
- WTI crude: Rose 2.01% to $99.10.
- Gold: Fell 2.66% to $4,039.8.
🚀 SPCX (SpaceX) Update
SPCX fell 9.14% to $144.75, down $14.56 from the prior close of $159.31. It gave back more than half of the gain from its earnings and guidance the day before. Profit-taking on the earlier surge appears to have combined with the broad tech selloff, but we found no report explaining the move specifically. Keep in mind that the committee to discuss a Tesla consolidation is not a settled matter.
⚠️ Investor Cautions
The decline reflects renewed doubt about the cost and financing of AI investment. As Meta shows, even results above forecasts can send a stock sharply lower when cash outflow and capex become the issue. The semiconductor index is more than 26% below its high, close to bear-market territory, and the failure of the prior day's rebound to hold suggests the trend has not confirmed a bottom.
The 8.52% single-day move in 3x leveraged TQQQ also deserves attention, since leveraged products lose value quickly in volatile stretches. With oil near $100 on Middle East tension and the November 3 midterms and the October 28 FOMC approaching, be prepared for higher volatility.
👁 What to Watch Next
Tomorrow (Friday, October 23) is the last session of the week.
- S&P 500 holding 7,600: From the 7,663.43 close, 7,600 is about 0.8% away. A break could prolong the retest of lows seen since mid-October. A rebound would first face the prior close of 7,757.
- Nasdaq 26,000: The 26,008.86 close sits just above this line. A break would read as a further downside signal.
- Dow 53,000: From 52,867.98, a gain of only about 0.25% gets there. This is where to check whether defensive strength continues.
- S&P Global flash services PMI: Forecast 57.9, prior 58.8. A stronger reading adds rate pressure, a weaker one highlights growth worries.
- American Express earnings: Due before the open, a gauge of consumer spending.
- Big tech earnings next week: Reports say Microsoft and Alphabet report midweek. Tech may stay cautious until then.
💡 Upcoming Events
- 2026-10-23: American Express earnings; S&P Global flash services PMI (forecast 57.9, prior 58.8)
- 2026-10-24 (Sat): Moderna melanoma vaccine trial details (ESMO)
- 2026-10-28: FOMC rate decision (same day as Bank of Canada and RBNZ decisions)
- 2026-10-29: ECB policy decision
- 2026-11-03: US midterm elections
📚 Sources
- Stock market today: S&P 500, Nasdaq tanks as tech stocks sink amid AI trade worries, Meta shares plummet — Yahoo Finance
- AI Trade Stumbles on Meta and Tesla, Oil Rises — GFX/FTS
- NASDAQ 100 plunges 500 points led by selloff in tech stocks; Meta dips 6% on $25 billion fine from Mexico — Upstox
- P&G fiscal 2027 first-quarter results — SEC 8-K
- Honeywell third-quarter 2026 results — SEC 8-K