AI spending doubts return as Nasdaq suffers its worst day since June

BREAKING: The Nasdaq 100 closes down -2.9%, posting its biggest daily drop since June 5th.

The index erased nearly -$1.2 trillion in market cap today. pic.twitter.com/38jQv0mtfo

— The Kobeissi Letter (@KobeissiLetter) October 22, 2026

Technology stocks rebounded on Wednesday, but the recovery collapsed today as investors reassessed the returns on AI spending. The Nasdaq fell 2.6%, the S&P 500 dropped 1.2%, and the semiconductor index plunged 6.7%. Treasury yields also recorded their steepest daily drop since the 2023 banking crisis as investors sought safety.

Last week: Technology shares sold off amid worries about the durability of the AI trade.
https://www.marketscreener.com/news/stocks-rise-on-ai-led-earnings-france-s-10-year-bond-yield-hits-5–ce785cd9dc8df722

October 21: The Nasdaq rebounds more than 1% as earnings briefly lift AI-related shares.
https://www.marketscreener.com/news/stocks-rise-on-ai-led-earnings-france-s-10-year-bond-yield-hits-5–ce785cd9dc8df722

Today, October 22: The Nasdaq falls 2.6% and the semiconductor index loses 6.7% as doubts about AI returns return.
https://apnews.com/article/1970e79d013cbddcae89c53b4b98f384

🚨 A $600 BILLION SELL-OFF HIT 8 ASIAN MARKETS IN ONE DAY. HERE'S WHAT HAPPENED TO EACH:

🇰🇷 South Korea — Kospi CRASHED 4%, $131 billion wiped out in a few hours
🇯🇵 Japan — Nikkei DOWN 2.6%, $195 billion gone, SoftBank down 5.6%
🇨🇳 China — Shanghai DOWN 1.5%, $151 billion… pic.twitter.com/C2Q0vQLEt1

— 🇺🇸 Ronald Carter (@USronaldcarter) October 22, 2026