The Nasdaq Composite ended Thursday, October 22, at 26,008.86, down 694 points or 2.6%, as a sharp selloff in semiconductor and artificial intelligence stocks collided with renewed concerns about financing costs and rising oil prices. The Philadelphia Semiconductor Index plunged 6.72%, while Meta, Nvidia and AMD suffered substantial losses.Friday’s session opened under pressure from the same two forces: the cost of funding AI infrastructure and the inflation risk from escalating conflict involving Iran. Brent crude, already near $114 before the opening bell, climbed to $115.86 by late morning, according to the Associated Press.US stocks showed a divided picture at 11:12 a.m. Eastern time on Friday. The Nasdaq had recovered 0.2%, supported by gains in major technology stocks, while the S&P 500 slipped 0.2% and the Dow Jones Industrial Average fell 541 points, or approximately 1%. The 10-year Treasury yield stood near 4.99% after Thursday’s sharp decline.
Nasdaq Lost 694 Points as Semiconductor Stocks Fell 6.7%
Thursday’s official closing figures showed how concentrated the selling had become. The Nasdaq Composite fell 694 points to 26,008.86, while the S&P 500 declined 93.74 points, or 1.2%, to 7,663.43.The Dow managed a gain of 11.89 points to 52,867.98, and the Russell 2000 rose 0.1% to 2,784.03. Despite Thursday’s decline, the Nasdaq and S&P 500 remained up 11.9% year to date, while the Dow was 10% higher.CNBC described Thursday as the Nasdaq’s worst session since June and the S&P 500’s worst since July.The Philadelphia Semiconductor Index was the clearest measure of the technology selloff, dropping 6.72% to 10,731.98. Nvidia declined 4.40%, Advanced Micro Devices lost 8.10%, and Micron Technology fell 6.26%.Meta Platforms dropped 6.98% to $648.85, while Canadian electronics manufacturer Celestica lost approximately 12%. AI infrastructure provider CoreWeave also fell about 10%, extending concerns about the financing requirements of companies building large-scale computing capacity.The scale of the decline contrasted with the more balanced market described in FinanceFeeds’ Thursday analysis of the Nasdaq 100, published while technology earnings and interest-rate concerns were pulling the index in opposing directions.
Meta and Nvidia Put AI Financing Costs in Focus
The immediate concern was not whether demand for AI computing exists. Investors were questioning how companies would finance the infrastructure required to meet that demand and whether eventual returns would justify the investment.Meta disclosed plans to issue a new class of non-voting shares, a move investors interpreted partly through the company’s expanding AI financing needs. The company also reported substantial capital expenditure commitments.Reuters reported that Meta recorded its first cash outflow in more than a decade, intensifying scrutiny of the relationship between AI spending and available cash generation.Nvidia chief executive Jensen Huang added to the financing discussion by warning that demand for capital exceeds its availability.Analysts at Yardeni Research questioned whether sufficient capital exists to fund the industry’s combined AI investment ambitions. The concern extends beyond individual technology companies because rising financing costs can change the economics of data-center development even when demand for computing capacity remains strong.That exposure is particularly visible among neocloud providers. FinanceFeeds’ CoreWeave analysis examined the relationship between its $104 billion backlog, infrastructure spending and debt obligations, while its Nebius stock analysis highlighted the gap between substantial future revenue expectations and the capital required to deliver capacity.The central issue for investors is increasingly the financing structure behind AI growth, rather than revenue expansion alone.
The 10-Year Treasury Yield Briefly Hit 5.02% Before Falling
The bond market delivered an important counterpoint to Thursday’s technology selloff.The benchmark 10-year Treasury yield traded around 5.02% during Thursday’s session, approximately 11 basis points below its earlier level, before falling further to around 4.95%-4.96% by the close. That represented a decline approaching 20 basis points on the day as investors bought government bonds.Friday’s early trading brought the yield back toward 5%, with the Associated Press reporting approximately 4.99% at 11:12 a.m. Eastern time.The 5% threshold matters because US government debt provides a relatively high-yielding alternative to equities, particularly businesses whose valuations depend heavily on profits expected years into the future.Higher yields also raise the financing costs faced by companies borrowing to construct data centers and purchase advanced computing equipment.Thursday’s decline in Treasury yields did not immediately rescue technology stocks. Instead, falling yields accompanied weaker equities as investors sought safer assets.That distinction is important. Lower bond yields can ordinarily support growth-stock valuations, but a simultaneous equity selloff and Treasury rally can also signal concerns about financial conditions and risk appetite.
Brent Oil Climbs Toward $116 as Iran Risks Intensify
The second major pressure on markets came from energy prices.Brent crude traded near $114 early Friday, while West Texas Intermediate was around $101.58 in the morning reports. Brent subsequently advanced to $115.86, according to the Associated Press, reflecting continuing concerns about supply disruptions across the Middle East.Investing.com described the earlier move toward $114 as the first such price level since May. Reports of renewed threats to regional oil infrastructure and possible future US-Israeli military action against Iran contributed to market uncertainty.The New York Times reported that US and Israeli officials had considered further strikes after the November 3 US midterm elections. Those reports concern potential plans, not confirmed future military operations.Separately, Iranian claims involving attacks on commercial vessels and security incidents around the Strait of Hormuz added to supply concerns, although the details of some reported incidents remain disputed or unverified.FinanceFeeds’ Friday Brent crude analysis examines the reported tanker incidents, Saudi infrastructure concerns and the implications for oil prices.Higher crude prices introduce an additional challenge for the Federal Reserve. If energy costs keep inflation elevated, policymakers may have less flexibility to reduce borrowing costs, even if technology shares and other risk assets weaken.
Gold Falls Below $4,000 as Investors Reassess Risk
Gold failed to provide a consistent refuge from Thursday’s equity selloff.Spot bullion briefly fell below $4,000 an ounce during Friday’s Asian session, reaching approximately $3,986.74 before recovering above that threshold.Investing.com said gold was on track for its sharpest weekly decline in more than four months, as rising energy prices reinforced interest-rate concerns.The decline illustrates the complexity of the current market environment. Geopolitical tension can support demand for gold, but elevated yields, dollar movements and liquidity needs can pull the metal in the opposite direction.FinanceFeeds’ October 23 gold report examines the break below $4,000 and the market conditions surrounding the decline.
Friday Futures Were Negative Before a Mixed Cash-Market Opening
Before Friday’s opening bell, US equity futures indicated further caution.At 6:09 a.m. Eastern time, Reuters reported Dow E-mini futures down 308 points, or 0.58%, S&P 500 futures lower by 15.5 points, or 0.2%, and Nasdaq 100 futures approximately unchanged.By 7:15 a.m., Investing.com recorded Dow futures down 315 points, S&P 500 futures lower by 18 points and Nasdaq 100 futures down 29 points. The percentage declines were approximately 0.6%, 0.2% and 0.1%, respectively.Individual premarket movements revealed a more complicated picture than the broader indexes suggested.Crown Castle gained 7.5% following reports of discussions involving SpaceX and US cellular infrastructure, while RingCentral jumped 15.5% after stronger earnings and an improved outlook. SK hynix’s US-listed shares rose 5.1%.Western Digital fell more than 4.5% despite stronger-than-expected results. American Express declined 2.5% even after raising its full-year earnings forecast, while Autoliv dropped 6.3%. Moderna also remained under pressure following Thursday’s nearly 18% decline.These were premarket readings rather than Friday closing prices. By late morning, the Nasdaq had turned modestly positive even as losses across the broader market remained widespread.
What Nasdaq Investors Should Watch Next
The immediate question is whether technology stocks can stabilize without a corresponding decline in energy prices and financing concerns.Friday’s early recovery in the Nasdaq did not amount to a broad market rebound. The Associated Press reported that approximately three-quarters of S&P 500 stocks were declining by late morning, despite support for the index from selected technology shares.Investors now face several measurable catalysts: the Federal Reserve’s October 27-28 policy meeting, September personal consumption expenditures inflation data and quarterly earnings from major technology companies, including Microsoft, Alphabet and Amazon.Those reports will help establish whether AI investment is producing sufficient revenue and cash flow to support current spending commitments.The 10-year Treasury yield’s movement around 5% and Brent crude’s ability to remain near $116 will provide additional signals about financing conditions and inflation expectations.Thursday’s Nasdaq close at 26,008.86 captures the initial repricing of the AI trade. Friday’s mixed opening shows that the market has not reached a uniform conclusion: investors are still willing to buy selected technology stocks, but confidence in the broader AI investment cycle remains under pressure.
