Nasdaq Slides 2.6% on AI-Spending Fears as the 10-Year Yield Drops Below 5%; Brent Jumps 4% to $113 and TASI Falls 2.3% to Its Lowest Close Since 2021 - Modern Money Experts

Nasdaq Slides 2.6% on AI-Spending Fears as the 10-Year Yield Drops Below 5%; Brent Jumps 4% to $113 and TASI Falls 2.3% to Its Lowest Close Since 2021

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Nasdaq Slides 2.6% on AI-Spending Fears as the 10-Year Yield Drops Below 5%; Brent Jumps 4% to $113 and TASI Falls 2.3% to Its Lowest Close Since 2021

Takeaway: On Friday 23 October 2026 (Asia/Dubai), markets are digesting a sharp AI-led tech sell-off and a fresh jump in oil. On Thursday the Nasdaq fell 2.60% to 26,008.86, its worst day since June, and the S&P 500 lost 1.21% to 7,663.43, its worst day since July, while the Dow edged up 0.02% to 52,867.98 because most stocks actually rose. Investors piled into US government bonds, pushing the 10-year Treasury yield below 5% in its biggest one-day drop since March 2023. Brent settled 4% higher at $113.17, its highest close since 4 May, on reports of possible renewed US–Israeli strikes on Iran and continuing Houthi attacks on Saudi Arabia. In the Gulf, TASI fell 2.32% to 9,695.86, its lowest close since April 2021 and an eighth straight weekly loss, Qatar slipped 0.37% to 8,611.10 and Kuwait’s All-Share fell 0.47% to 8,290.81.

What happened

1) US equities: AI spending worries hit tech, but most stocks rise

  • Thursday 22 October 2026 close (AP; CNBC; WSJ): Nasdaq Composite 26,008.86 (−694.00 / −2.60%), S&P 500 7,663.43 (−93.74 / −1.21%), Dow 52,867.98 (+11.89 / +0.02%). AP noted that about two out of every three stocks in the S&P 500 rose; the drop came from the heavyweight tech names.
  • Worries about how much AI companies are spending and borrowing returned (AP; CNBC). Meta fell about 7% after its results, even though revenue beat forecasts, as it set out plans to raise money for AI investment, including a new class of shares (AP; Reuters). Nvidia lost 4.4% and was the biggest single drag on the S&P 500, AMD fell 8.1%, Lam Research 11.8% and CoreWeave 10.1% (AP; CNBC). Tesla dropped 3.1% (AP). The WSJ said a major chip index fell about 6.7%.
  • Outside tech, results helped: Procter & Gamble rose 5.6% after beating forecasts and keeping its full-year outlook, and Lockheed Martin and CSX also topped profit estimates (AP). American Airlines rose about 3% despite a fuel-driven quarterly loss (Investing.com). Rate-sensitive groups outperformed as yields fell: a homebuilder ETF gained 3.8% and a regional-bank ETF 2.5% (CNBC).
  • After the bell (CNBC): Western Digital fell about 5–6% even after beating estimates, Bloom Energy fell about 5% despite a beat and stronger guidance, and Deckers slid about 7% after missing revenue forecasts and guiding below estimates. RingCentral jumped about 14% on better-than-expected results.

2) Rates, jobs data, the Fed and gold

  • The 10-year Treasury yield fell about 17 basis points to roughly 4.97%, the first close below 5% since 23 September and the biggest one-day drop since 10 March 2023 (CNBC; AP). The 2-year yield fell about 16 basis points to around 4.66% (CNBC). In Asian trade on Friday the 10-year was near 4.96% (Reuters).
  • US weekly jobless claims fell to 194,000 for the week ended 17 October, close to the lowest levels since the late 1960s (CNBC; US Labor Department).
  • The Fed meets next week (27–28 October). Markets still expect no move this month; after Thursday’s bond rally, the implied chance of a December hike fell to about 85% (CNBC; Reuters).
  • Gold did not benefit from the safe-haven move: COMEX gold futures settled 2.12% lower at $4,042.80 an ounce (WSJ/Dow Jones), and spot gold was flat near $4,022 in Asia on Friday (Reuters).

3) Oil: Brent at its highest close since May

  • Thursday settlement (CNBC; WSJ/Dow Jones): Brent $113.17 (+$4.35 / +4.0%), the highest close since 4 May; WTI $99.47 (+$2.32 / +2.4%).
  • The New York Times reported that US and Israeli militaries have drawn up plans for renewed strikes on Iran after next month’s US midterm elections, and President Trump said something would happen “fairly soon” on Iran (CNBC). Houthi attacks on Saudi Arabia continued: the death toll from Wednesday’s attack on King Fahd International Airport in Dammam rose to two, with eight injured, and operations have resumed (CNBC; Khaleej Business Insight). Reuters reported that Saudi Aramco told staff to evacuate its Dhahran headquarters and work remotely (Reuters via CNA; CNBC).
  • Friday in Asia: Brent was little changed, down 0.2% at $112.96 at 00:30 GMT, and WTI was at $98.12 (Reuters via CNA). Brent is on track for a third straight weekly gain (Reuters).

4) Gulf equities: Thursday 22 October

  • TASI 9,695.86 (−230.76 / −2.32%), the lowest close since April 2021, on turnover of about SAR 4.9bn (Argaam; Asharq Al-Awsat; Khaleej Business Insight). Losses for the week reached about 4.1%, the eighth straight weekly decline; Argaam said it is the longest weekly losing streak since 1994. Saudi National Bank fell 5.1% to SAR 34.62, SABIC 3.7% to SAR 43.72, Ma’aden about 5% to SAR 55.90, and Aramco 0.7% to SAR 25.40 (Argaam; Reuters).
  • Qatar (QE) 8,611.10 (−32.37 / −0.37%); 18 stocks rose, 31 fell and 4 were unchanged, with turnover of about QR409.7m (QNA). Qatar National Bank lost about 1% (Reuters).
  • Kuwait All-Share 8,290.81 (−39.19 / −0.47%); the Premier Market fell 0.48% to 8,723.60; value traded about KD59.6m (Khaleej Business Insight; Reuters).
  • UAE: Dubai fell 0.72% to 5,817.76, with Emirates NBD down 2.9%, and Abu Dhabi fell 0.71% to 9,702.15 (Reuters; Khaleej Business Insight). Oman’s MSX 30 fell 0.8% to about 7,379 and Bahrain 0.3% (Reuters).
  • Saudi, Qatari and Kuwaiti markets are closed on Friday and Saturday and reopen on Sunday 25 October. Dubai and Abu Dhabi trade today.

5) Asia and futures: Friday morning

  • On Thursday, Korea’s Kospi fell 3.5%, Hong Kong’s Hang Seng 3% and Japan’s Nikkei 225 2.7% (AP). On Friday morning Asian tech remained under pressure: the Nikkei was down about 1.3–1.4% after Japan’s core inflation came in above the Bank of Japan’s 2% target, and the Kospi was down roughly 2%, while the Hang Seng edged higher (Reuters; Investing.com).
  • US stock futures were mixed: S&P 500 futures were down 0.04%, Dow futures down 92 points (−0.17%) and Nasdaq-100 futures up 0.11% (CNBC).

Why it matters for Gulf + US-focused Arab traders

  • The AI debate is now about funding: Meta beat on revenue and still fell, while companies that borrow to buy AI chips, such as CoreWeave, were hit hard. The market is weighing how big AI spending is, and how it is paid for, alongside growth.
  • Bonds acted as a cushion: As tech fell, money moved into US Treasuries and yields dropped sharply. Lower yields helped rate-sensitive sectors such as homebuilders, regional banks and real estate, which is part of why the Dow finished slightly higher.
  • High oil is not lifting Saudi shares: Brent is at a five-month high, yet TASI sank to its lowest close since 2021 as the attacks inside the kingdom, including the Aramco headquarters evacuation report, weighed on sentiment. Across the region, all the main Gulf indexes closed lower on Thursday.

What’s ahead

  • Today (Friday): S&P Global flash PMIs for October (17:45 Asia/Dubai) and the final University of Michigan sentiment survey for October (18:00 Asia/Dubai); American Express and SLB report before the US open (eOption).
  • Sunday 25 October: Saudi, Qatari and Kuwaiti markets reopen and will react to Friday’s US session and oil moves.
  • Next week: The Fed meets on 27–28 October, with the decision on 28 October; the Bank of Japan also meets next week (CNBC; Investing.com).

Short educational angle: how an index can fall when most of its stocks rise

The S&P 500 and the Nasdaq are weighted by market value, so the largest companies move them the most. On Thursday about two-thirds of the S&P 500’s members rose, yet the index fell 1.2% because a handful of very large tech stocks, led by Nvidia and Meta, fell sharply (AP). The Dow, which is weighted by share price and includes fewer chip names, ended slightly higher. This is why many analysts look at market breadth, such as how many stocks are rising versus falling, or compare the normal index with an equal-weight version, to understand whether a move is broad or concentrated in a few names. Neither view is “right” on its own; together they give a fuller picture of what happened. This is educational framing only, not a forecast or a recommendation on any trade.

Sources

  1. AP via The Guardian — Sharp drops for AI stocks overwhelm markets worldwide as oil prices jump, 22 Oct 2026. theguardian.com
  2. CNBC — Stock futures trade mixed after tech sector sell-off: Live updates, 22–23 Oct 2026. cnbc.com
  3. WSJ — Stock market news, Oct. 22, 2026: Tech selloff deepens as flight into Treasurys drives yields lower. wsj.com
  4. Reuters via Investing.com — S&P 500, Nasdaq end sharply lower as revived AI doubts ignite tech selloff, 22 Oct 2026. investing.com
  5. CNBC — Stocks making the biggest moves after hours: Western Digital, Bloom Energy, Deckers Outdoor & more, 22 Oct 2026. cnbc.com
  6. Investing.com — American Airlines Q3 2026 slides: revenue surges 19% amid fuel crisis, 22 Oct 2026. investing.com
  7. CNBC — 10-year Treasury yield tumbles below 5% to lowest level in nearly a month, 22 Oct 2026. cnbc.com
  8. CNBC — Jobless claims near the lowest since the 1960s as low-fire trend continues, 22 Oct 2026. cnbc.com
  9. US Department of Labor — Unemployment insurance weekly claims news release. dol.gov
  10. Reuters via Business Standard — Asian shares slip as tech rout boosts bonds, dents rate hike bets, 23 Oct 2026. business-standard.com
  11. WSJ/Dow Jones via Morningstar — Comex gold settles 2.12% lower at $4,042.80, 22 Oct 2026. morningstar.com
  12. CNBC — Brent crude tops $113, highest level since May, after Trump hints at action on Iran, 22 Oct 2026. cnbc.com
  13. Reuters via CNA — Oil little changed as supply concern lingers amid Houthi attacks on Saudi Arabia, 23 Oct 2026. channelnewsasia.com
  14. Argaam — TASI falls 2.3% to 9,696 pts, records lowest close in 66 months, 22 Oct 2026. argaam.com
  15. Asharq Al-Awsat — Saudi stock market drops 2.3% to lowest close since 2021, 22 Oct 2026. aawsat.com
  16. Reuters via Business Recorder — Gulf markets fall as fresh Houthi strikes on Saudi Arabia raise regional risk, 22 Oct 2026. brecorder.com
  17. Khaleej Business Insight — Saudi stocks fall 2.3% to lowest close since April 2021 as Dubai, Abu Dhabi, Qatar and Kuwait also decline, 22 Oct 2026. khaleejbusinessinsight.com
  18. QNA — QSE index closes lower, 22 Oct 2026. qna.org.qa
  19. Investing.com — Asia stocks fall as AI rout batters S.Korea; Japan spooked by strong CPI, 23 Oct 2026. investing.com
  20. eOption — Weekly event calendar 10/19/2026 – 10/23/2026. eoption.com

Disclaimer: This article is for educational and informational purposes only and does not constitute investment advice, a trading recommendation, or financial advice. Trading and investing involve a substantial risk of loss. Past performance does not guarantee future results. Do your own research and consult a licensed adviser where appropriate. Modern Money Experts (MMEC) is an educational brand.

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