Published: October 24, 2026 • Category: Global Markets • US Stocks • By Mahesh
MUMBAI: Wall Street ended a volatile week lower on Friday, October 23, with the Dow Jones Industrial Average down 652.82 points (1.23%) at 52,215.16, the S&P 500 down 0.52% at 7,623.68 and the Nasdaq Composite down 0.21% at 25,955.34.[4][5] Higher oil prices and rising Middle East tensions weighed on stocks ahead of next week's Federal Reserve policy meeting, one day after the Nasdaq fell 2.6% in its worst session since June.[5][8] CNBC put the weekly changes at minus 0.5% for the S&P 500, minus 0.7% for the Nasdaq and plus 0.4% for the Dow.[4]
The Week at a Glance
| Index | Oct 22 Close | Oct 22 Change | Oct 23 Close | Oct 23 Change |
|---|---|---|---|---|
| Dow Jones Industrial Average | 52,867.98 | +0.02% | 52,215.16 | -1.23% |
| S&P 500 | 7,663.43 | -1.21% | 7,623.68 | -0.52% |
| Nasdaq Composite | 26,008.86 | -2.60% | 25,955.34 | -0.21% |
| VIX volatility index | 19.03 | +14.1% | Not stated | Not stated |
Source: CNBC, Yahoo Finance and Zacks reports of exchange data.[4][5][7] Another feed showed the S&P 500 at 7,664.99 on Thursday, so figures differ slightly by timestamp.
The S&P 500 closed about 2.8% below its record high of 7,844.67 set earlier this month, on Depth Grid's calculation.[15] Outlets differ on the Dow's weekly gain, with CNBC citing 0.4% and TheStreet and Trading Economics citing 1.4% to 1.7% from earlier snapshots, so Depth Grid uses CNBC's final figure.[4][6][15]
Thursday's AI Selloff: What Triggered It
Chip stocks had their worst day since June 23, with the Philadelphia Semiconductor Index falling 6.72% to 10,731.98, more than 26% below its June 22 record close.[10] Lam Research led a drop among chip equipment and photonics suppliers after a guidance or supply-chain warning. Meta fell 6.98% after raising its 2026 capital spending guidance to a range of 135 billion to 145 billion dollars.[10][12] Investing.com said the weakness reflected heavy debt-funded spending on AI infrastructure combined with elevated borrowing costs.[9]
Nvidia chief executive Jensen Huang told CNBC that demand from AI cloud providers was off the charts, but that a lack of capital was limiting their growth, which traders read as a sign that the bottleneck has moved from chips to balance sheets.[12][13] Reuters said a batch of high-profile earnings reports ignited the fresh fears about the AI spending race.[8]
| Stock | Oct 22 Move | Context |
|---|---|---|
| Meta | -6.98% | Capex guidance of $135 billion to $145 billion |
| CoreWeave | -10.06% | AI cloud and neocloud exposure |
| AMD | -8.10% | AI chip demand and funding worries |
| Micron | -6.26% | Memory for AI servers |
| Amazon | -4.5% | Hyperscaler capex exposure |
| Nvidia | -4.40% | Capital shortage comments |
| Alphabet | -3.2% | Hyperscaler capex exposure |
| Microsoft | -2.1% | Hyperscaler capex exposure |
| Apple | +1.23% | Limited direct AI infrastructure spending |
Source: Mitrade, Pomegra and The Wall Street Republic market recaps.[12][13][10] These are secondary aggregators. Individual percentage moves may differ by data vendor.
An analysis cited by Stock Titan found that chip and AI stocks made up 93% of the Nasdaq-100's net loss in value on the day.[16] Apple rose 1.23% to 348.22 dollars, as one of the few megacaps to rise.[10]
Oil and the Middle East
Brent crude settled at 113.17 dollars on Thursday after fresh attacks by Iran-backed Houthis on Saudi Arabian energy facilities and airports raised fears of supply disruption.[9][13] Oil rose again on Friday. The Dow fell more than the S&P 500 or the Nasdaq as Middle East tensions increased.[5][6] Energy shares fell 2.01% on Thursday even as crude surged, as investors weighed the risk of lower demand from higher fuel costs.[14]
Rotation Beneath the Surface
The index moves hid a rotation away from AI. CNBC reported that the S&P 500 excluding AI stocks was up about 6.6% in October, while the S&P 500 itself was down roughly 0.4% on concerns about AI financing.[4] On Thursday the equal-weight S&P 500 rose 0.73%. Consumer staples and health care stocks reached record highs.[12][11]
On Friday, American Express fell 1.7% despite better-than-expected earnings. Meta lost another 1.9% and Microsoft 0.5% in the same session, according to Trading Economics.[15] Intraday figures are indicative only and may have changed by the close.
What Comes Next
The Federal Reserve meets next week. US midterm elections follow, which is why TheStreet described Friday's close as stocks down and oil up ahead of the midterms.[6][5] The VIX rose 14.1% to 19.03 on Thursday. The Nasdaq closed below both its 50-day and 100-day moving averages, its lowest close since mid-September.[7][11] The next test for the AI trade is whether other hyperscalers follow Meta in giving capital spending guidance. Another test is whether financing worries ease.
What It Means for Indian Investors and Tech
Indian IT services and technology investors follow the Nasdaq closely, because AI spending plans by US hyperscalers feed into global demand for software, data centre and engineering services. A pullback in AI infrastructure stocks raises questions about how fast that spending translates into orders for Indian vendors, though the sources reviewed do not link this week's moves to any specific Indian company.
For background, see Depth Grid's guide to the AI native company, our report on Volantis' 88 million dollar raise and our analysis of Q3 global venture funding, which track capital flowing into AI hardware and software. Our earlier Wall Street weekly wrap covers the previous period.
Common Questions and Direct Answers
Why did the Nasdaq fall 2.6% on October 22, 2026?
Investors sold AI and chip stocks after Meta raised its capital spending plan and Lam Research issued a weak outlook, while Nvidia's CEO said a shortage of capital was limiting growth at AI cloud firms. The Philadelphia Semiconductor Index fell 6.72%. It was the Nasdaq's worst day since June. Brent crude settled at 113.17 dollars.
How did US stocks close on Friday, October 23, 2026?
The Dow Jones Industrial Average fell 652.82 points (1.23%) to 52,215.16. The S&P 500 slipped 0.52% to 7,623.68 and the Nasdaq Composite lost 0.21% to 25,955.34. Higher oil prices and rising Middle East tensions weighed on sentiment ahead of next week's Fed policy meeting.
How did the major US indexes do over the week?
CNBC reported that the S&P 500 lost 0.5% and the Nasdaq shed 0.7% for the week, while the Dow gained 0.4%. Other outlets cited larger Dow gains from earlier snapshots, between 1.4% and 1.7%, so the exact figure depends on the source and timing. The S&P 500 and Nasdaq both posted a second straight weekly loss.
Why did oil prices rise this week?
Reports tied the rise to fresh attacks by Iran-backed Houthis on Saudi Arabian energy facilities and airports, which raised fears of supply disruption. Brent settled at 113.17 dollars on Thursday. Oil rose again on Friday as Middle East tensions increased. Higher fuel costs also added to concern about inflation ahead of the Fed meeting.
What are the main market events to watch next week?
The Federal Reserve holds its policy meeting next week. US midterm elections follow shortly afterwards. Investors will also watch oil prices and further AI-related earnings and capital spending guidance. They will also watch whether the rotation out of AI stocks continues. The VIX closed at 19.03 on Thursday after a 14.1% jump.
Primary Sources and Regulatory Filings
- U.S. Securities and Exchange Commission: company filings and earnings reports
- Federal Reserve: monetary policy calendar and statements
- Nasdaq: index levels and market data
- CNBC: stock market news for October 23, 2026
- Yahoo Finance: stock market today, Friday, October 23
- TheStreet: stock market today, October 23, 2026
- Zacks via Yahoo Finance: stock market news for October 23, 2026
- Reuters via Yahoo Finance: S&P 500 and Nasdaq end sharply lower as AI doubts ignite tech selloff
- Investing.com: Nasdaq posts worst day since June as AI financing worries batter risk sentiment
- The Wall Street Republic: daily market recap for October 22, 2026
- TheStreet Pro: AI selloff gains steam but solid market action beneath the surface
- Mitrade: Nasdaq closes at 26,008.86, stock moves and Meta capex guidance
- Pomegra: Nasdaq drops 2.6% as AI spending fears hit megacaps
- HDFC Sky: Nasdaq plunges 2.6% as AI spending fears and oil surge drive US selloff
- Trading Economics: US stock market index and record high
Related Intelligence
By Mahesh | Depth Grid News Desk | depthgrid.in
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