Nasdaq Drops as Investors Worry About AI Spending
Source reports published 22 Oct 2026, 10:00 am – 23 Oct 2026, 10:00 am AEST
The Nasdaq Composite index fell sharply on Thursday, with tech stocks tumbling as investors expressed concern over the massive capital expenditure in artificial intelligence and the potential for unsustainable growth. Market sentiment was further impacted by rising oil prices.
What happened
- The Nasdaq Composite Index dropped 751 points, or 2.8%, on Thursday amid growing investor anxiety regarding the substantial investments being made in artificial intelligence.
- The S&P 500 and Dow Jones Industrial Average also experienced declines, reflecting broader market concerns.
- Analysts noted that companies are reliant on equity and debt to finance AI infrastructure buildouts, but markets are becoming less accommodating.
- The Brookings Institution estimates over $10 trillion will be invested in AI infrastructure between 2025 and 2032, a figure dwarfing previous investments.
- Meta Platforms reported increased AI spending, while Tesla and Nvidia also saw significant declines.
- Rising oil prices, driven by uncertainty surrounding the Iran-US conflict, added to the negative sentiment.
- Jay Goldberg, a senior analyst, attributed the market swings to investor sentiment rather than fundamental changes, highlighting a "giant wall of worry."
- Global AI investment is projected to reach $2.7 trillion in 2026 and $3.6 trillion in 2027.
Original reporting
- CBS News: Nasdaq dives more than 750 points as investors worry massive AI spending won't pay off
2026-10-22T20:12:22+00:00 - Guardian: Sharp drops for AI stocks overwhelm markets worldwide as oil prices jump
2026-10-22T00:00:00+00:00 - Al Jazeera: US tech stocks tumble as investors fret over AI spending
2026-10-23T00:00:00+00:00