The Nasdaq plunged nearly 700 points in a single trading session as concerns about artificial intelligence spending rattled technology investors. One major Wall Street firm believes the correction could end after the 2026 midterm elections.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
NasdaqAI investmenttech stocksmidterm elections
Open a keyword to see other news on the same topic.
Related tickers and likely impact
QQQ
• NeutralInvesco QQQ Trust
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | ETF |
| Close on 10/26/2026 | 712.11 |
| Change that session | +1.09% |
SPY
• NeutralSPDR S&P 500 ETF
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | ETF |
| Close on 10/26/2026 | 765.22 |
| Change that session | +0.69% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- Stocktwits AI Roundup: Meta’s Capex, Lam’s Supply Warning Hit Tech Stocks As Netflix Disappoints
Tech stocks fell sharply on Thursday as concerns grew over whether massive AI investments would generate sufficient returns; the Nasdaq dropped 2.6%, its steepest daily decline since June, while the S&P 500 fell 1.2%. Meta tumbled 7% after raising the low end of its capex forecast by $5 billion to $135 billion to $145 billion and announcing plans for a new share structure, despite better-than-expected Q3 revenue; Nvidia (NVDA) lost 4% and SpaceX (SPCX) fell about 9%. Netflix shares slid after its Q4 profit forecast fell short of expectations and it cut its full-year advertising forecast, even though Q3 revenue rose nearly 12%. Western Digital and Lam Research both reported results above expectations, but WDC shares fell 6.4% the day after its report.
- U.S. stock futures steady after Nasdaq posts worst day since June
U.S. stock futures were little changed after Wall Street ended sharply lower, with the Nasdaq Composite falling 2.6% to 26,008.86 points, its steepest daily decline since June, on concerns about the cost and financing of AI investments. The S&P 500 lost 1.2% to 7,663.43, while the Dow Jones Industrial Average ended flat at 52,867.98 as investors moved toward more defensive sectors. Meta Platforms shares dropped nearly 7% after the company reported its first cash outflow in more than a decade, driven by AI-related spending, and Tesla fell about 3.1% after cutting its 2026 capital expenditure forecast. The Philadelphia Semiconductor Index dropped 6.7%, and Brent crude rose 4% to $113.17 a barrel, while the 10-year U.S. Treasury yield fell nearly 20 basis points to around 4.95%.
- Nasdaq 100 Clocks Worst Day In Four Months As Investors Grow Weary Of Capex, Elevated Debt — META, SPCX, BE, MRNA In Focus
The S&P 500 fell 1.2% and the Nasdaq 100 slid 2.9% as investors grew wary of large hyperscalers' surging capex and geopolitical tensions lifting oil prices. Semiconductor ETFs dropped between 6% and 7%, while Meta shares eased about 6% after negative free cash flow of $2.12 billion and an updated capex plan that raised the spending floor from $130 billion to a range of $135 billion to $145 billion. Brent crude rose 4% to $113.17 a barrel after reports that U.S. and Israeli forces are preparing possible action against Iranian sites after the midterm elections. Moderna shares slumped about 18% after melanoma vaccine trial data leaked ahead of its planned announcement and fell short of high expectations. Datadog is reportedly pursuing an acquisition of cloud security startup Upwind, and Elon Musk has reportedly invested about $1 billion in Skydance.
- investingLive Americas FX news wrap 22 Oct : Nasdaq sinks as AI worries bite ; Treasury yields tumble
- AI Stocks Drag Markets Down Worldwide as Oil Prices Climb to Their Highest Since May
AI stock declines dragged markets lower worldwide on Thursday, while oil prices rose to their highest since May on worries about the war with Iran. The S&P 500 fell 0.8% and the Nasdaq composite 1.5%, while the Dow Jones Industrial Average slipped just 0.1%, or 60 points. Lam Research sank 7.7% despite slightly stronger-than-expected profit and revenue, as its forecast midpoint for the final three months of 2026 was slightly below analysts’ expectations, while Meta fell 5.8%, Nvidia 2.3% and CoreWeave 3.8% on debt worries. Asian markets also slid, with South Korea’s Kospi down 3.5%, Hong Kong’s Hang Seng down 3% and Japan’s Nikkei 225 down 2.7%, as Brent crude rose 2.6% to $111.66 a barrel. U.S. 10-year Treasury yields fell to 5.03% from 5.13% as investors bought safer government bonds, though they remain well above the 3.97% level before the war with Iran.
- Update: Nasdaq Marks Worst Day Since June as AI Spending Worries Resurface
Related markets
Latest news
- Vanguard's Growth ETF Usually Beats the Market After a Lagging Year. I'd Own It, but Not for a 2027 Rebound.
The Vanguard Morningstar Growth ETF (VUG) hit a record of $92.64 on Oct. 6 but has since fallen about 6% to roughly $87, while the S&P 500 is down less than 3% over the same period. The fund is up about 7% in 2026 versus about 11% for the index, and if the gap holds through December, it would be the first year since 2022 that it trails the S&P 500 on price alone. The fund holds a large share of its assets in its top 10 stocks, many of them tech companies, and several, including Tesla (down about 17%), are lagging this year. Rising interest rates also weigh on growth stocks, since their value depends on profits expected far in the future. The author notes the fund has beaten the S&P 500 in 16 of 21 years from 2005 to 2025, but says he would not rely on 2027 to erase this year's gap.
- Joby Aviation Stock Just Hit a 52-Week Low. History Says This Happens Next
Joby Aviation (JOBY) has fallen from about $13 at the start of 2026 to below $5, hovering near its 52-week low of about $4.40. Its first-ever coast-to-coast autonomous flight and its plan to acquire Resonant Sciences have done little to lift the shares this year, and the decline of similar stock Archer Aviation suggests waning enthusiasm for eVTOL companies. The article notes that past downturns were followed by sharp rebounds, such as in 2025, when a $250 million Toyota investment and other news pushed the stock above $10 and up to around $20 before valuation concerns pulled it back. The author argues investors now want to see actual bookings rather than announcements, and that a milestone such as FAA type certification could push the stock back into double digits. He says the stock may be worth a look for aggressive investors who can tolerate volatility.
- Stock Market Today, Oct. 26: AI Optimism Lifts Nasdaq as Tech Stocks Rebound
The S&P 500 gained 0.70% to 7,677, the Nasdaq Composite rose 0.82% to 26,169, and the Dow Jones Industrial Average edged up 0.28% to 52,362 as AI optimism returned and oil prices fell. Gold rose 0.46% to $4,026.30 and the 10-Year Treasury yield rose 0.04% to 5%, with investors favoring Real Estate and Technology while Communication Services faced selling pressure. Anthropic filed its S-1 to list on the Nasdaq under the ticker "ANT," and its strong revenue growth figures eased fears that the AI boom was losing steam, helping revive tech stocks. Tesla rose over 5% after Barclays upgraded the stock to Overweight and raised its price target from $370 to $450, while Meta fell about 2% after disclosing plans to raise up to $95 billion for AI infrastructure. Investors are now looking ahead to Microsoft's earnings and the Federal Reserve's rate decision this week.
- Perpetua Resources Awarded Up to $40 Million in U.S. Army Funding to Advance Domestic Tungsten Supply for American Defense
Perpetua Resources (Nasdaq: PPTA; TSX: PPTA) received a new 36-month, $40 million award through the U.S. Army's Defense Ordnance Technology Consortium to assess producing tungsten concentrate at its Stibnite project in Idaho. The cost-share program will fund drilling to define a potential tungsten resource, metallurgical testing, and permitting and engineering for an exploration decline. Perpetua will match the Army's $40 million contribution, and the initial 18-month phase is expected to cost about $18 million, shared equally. The company notes there has been no commercial tungsten mining in the U.S. since 2015 and that recent Chinese export controls add to supply risk. With this award, total U.S. Government awards to Perpetua for critical minerals reach $126 million since 2022.
- Anthropic's IPO puts power in the hands of founders, giving everyday shareholders little voice
Anthropic’s IPO prospectus gives its seven co-founders control through “Founder LLC,” which will hold 50.1% of voting power and determine the outcome of all stockholder votes for the foreseeable future. The filing says this may limit investor influence and make unsolicited mergers or proxy contests less likely. The Long-Term Benefit Trust, set up in 2023, can elect and remove a board majority through a special class of Class T common stock. Anthropic is a “controlled company” under Nasdaq rules and plans to list under the ticker “ANT,” and its filing includes more than 90 pages of risk factors. Bessemer Venture Partners, which backed the company at a $14 billion valuation, said investors are often comfortable with founder-led governance when leadership is strong.
- Boost Run stock surges on AI infrastructure deployment
Boost Run (NASDAQ: BRUN) shares rose 6.7% in after-hours trading on Monday after the company announced AI infrastructure deployments and more than $600 million in non-dilutive project financing closed year to date. The company delivered the first project phase to a leading AI research and product company under agreements signed in May 2026, deploying NVIDIA B300 GPUs with related network storage and CPU node services. In September it signed a five-year, $525.6 million AI cloud services agreement with a provider of enterprise AI models and solutions. The company says it has a fully funded runway through the fourth quarter of 2026, expects deployed colocation capacity to reach about 40 MW by year-end, and structures its project financing to be repaid before contracts end.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.