# AI stocks drag markets down as Nvidia, Meta and CoreWeave slide

> AI-linked stocks fell sharply on 22 October, pulling the Nasdaq down 2.6% and the S&P 500 down 1.2%.

*Big-tech losses masked broad gains across the S&P 500, leaving the Nasdaq down 2.6% and investors questioning the cost of funding AI spending.*

By Bez · InsidersFeed
Canonical: https://insidersfeed.com/news/ai-stocks-drag-markets-down-as-nvidia-meta-and-coreweave-slide

The market is now punishing AI companies for how they pay for the boom, not just for what they earn. On 22 October, AI-linked stocks dragged markets lower worldwide, according to [AP via BNN Bloomberg](https://www.bnnbloomberg.ca/markets/2026/10/22/ai-stocks-drag-markets-down-worldwide-as-oil-prices-climb-to-their-highest-since-may/).

The S&P 500 fell 1.2% to 7,663.43, its worst day since July. The Nasdaq Composite dropped 2.6% to 26,008.86. The Dow rose 11.89 points to 52,867.98. Two of every three S&P 500 stocks rose, but big-tech losses masked the gains.

Nvidia fell 4.4%. As the largest US company by market value, it was the biggest drag on the S&P 500. Meta lost 7% after revenue beat expectations but profit missed. It also plans a new stock class to fund AI spending. CoreWeave dropped 10.1% amid concerns about the debt it took on to buy Nvidia chips.

Good results did not protect Lam Research, which fell 11.8% despite stronger-than-expected results. Its profit forecast midpoint came in slightly below analyst estimates, and the stock had risen 52.4% this year. Tesla fell 3.1% after a stronger-than-expected profit but weaker revenue than forecast.

The selling spread abroad. South Korea's Kospi fell 3.5%, Hong Kong's Hang Seng 3% and Japan's Nikkei 225 2.7%. France's CAC 40 fell 1.4%. Brent crude rose 4% to $113.17, its highest in five months, amid uncertainty over the war with Iran. The 10-year Treasury yield fell to 4.97% from 5.13%.

## The Insider view

The pattern is clear: expectations had run ahead of results. Lam Research beat forecasts and still lost 11.8% after a 52.4% run this year, because a guidance midpoint landed slightly below estimates. When a stock is priced for more than a beat, a small miss on outlook is enough to trigger a sell-off.

The exposed names are those whose AI plans depend on outside capital. CoreWeave's debt for Nvidia chips and Meta's planned new stock class both put financing in the spotlight. The report says AI stocks have been swinging on worries that the boom may be under threat, and analysts in related coverage point to the rising cost of borrowing to build data centres and buy chips. Watch how the market prices that funding, since it decides who can keep spending.

## Key takeaways

- AI leaders sold off: Meta fell 7%, CoreWeave 10.1% and Lam Research 11.8%.
- Funding is the pressure point: Meta plans a new stock class, CoreWeave carries chip debt.
- Two in three S&P 500 stocks rose, but Nvidia's 4.4% drop dominated the index.

## Sources

- [Markets today: Sharp drops for AI stocks as oil prices jump](https://www.bnnbloomberg.ca/markets/2026/10/22/ai-stocks-drag-markets-down-worldwide-as-oil-prices-climb-to-their-highest-since-may/) — BNN Bloomberg (AP), 2026-10-22