US stocks today: Nasdaq slumps 2.5%, S&P 1% as revived AI doubts ignite tech selloff
Economic Times 2 hrs ago·22 Oct 2026, 8:15 pm
US equities opened lower on Tuesday as renewed doubts about the scale of corporate AI investment sparked a broad sell‑off in technology and semiconductor names. The Nasdaq fell about 2.5%, its sharpest one‑day drop since June, while the S&P 500 slipped roughly 1%. The pull‑back also saw high‑profile names such as Tesla and Meta lose ground, and oil prices rose to a five‑month high on fresh Middle‑East tensions.
The move matters because many investors have been pricing in aggressive AI‑related capital spending, which can strain profit margins if revenue growth stalls. A slide in the tech‑heavy Nasdaq can pull the broader market lower, affecting diversified portfolios and retirement accounts that track these indices.
Investors should keep an eye on upcoming earnings reports from major AI‑focused firms, any guidance on corporate AI budgets, and developments in the Middle‑East that could keep oil volatile. Additionally, signals from the Federal Reserve about interest‑rate policy may influence risk appetite in the coming weeks.
Key takeaways
- Category: Stocks.
- AI reads the tone as negative (potentially bearish) for the stock.
- Flagged as a high-impact, market-moving story.
Why it matters
This is a high-impact development and could move the stock. The tone is negative — watch for downside reaction. Use the price and stock snapshot to gauge how the market is responding.
