Global markets fell on Thursday, October 22, as concerns about returns from huge AI investments and rising oil prices amid Middle East tensions led investors to seek safer assets.
Technology shares led the decline after Meta’s quarterly results raised questions about whether heavy spending on AI infrastructure would pay off soon enough. Meta’s revenue was higher than expected. But its plan to issue shares without voting rights added to concerns about its growing funding needs.
The Nasdaq Composite fell 2.6%, its largest one-day drop since early June. The S&P 500 fell 1.2%. The Dow rose slightly.
This showed that weakness was concentrated in technology stocks. An index tracking semiconductor stocks fell 6.7%. Meta shares lost 7% as investors reconsidered the sector’s costly expansion of AI infrastructure.
Oil prices moved the other way, with Brent oil reaching a five-month high after Houthi attacks in Saudi Arabia increased fears of disruptions to energy supplies. The rise added to concerns that long-lasting tensions in the region could keep fuel costs high. It could also make the outlook for inflation more difficult to assess.
Yields on U.S. Treasury bonds fell as investors sought the relative safety of government bonds. At the same time, the decline in technology markets also spread across Asia and Europe. Together, the market moves showed how uncertainty about AI spending and energy risks linked to political tensions were weighing on investors’ willingness to take risks.