Nasdaq Sinks 694 Points as Meta Stock Slumps: Stock Market Today
Nasdaq fell 2.6% as tech stocks declined due to earnings concerns and AI spending worries. Meta (META) dropped 7% despite revenue beat, citing higher AI costs. Tesla (TSLA) fell 3.1% after reporting lower earnings and increased expenses. Procter & Gamble (PG) rose 5.6% on strong earnings. Oil prices rose 3% to $100.06 per barrel.
How this was made
The 30-second read
Why it matters
The earnings surprises and guidance adjustments directly moved the respective stocks, contributing to a 2.6% Nasdaq decline and a mixed market reaction.
Market read
The fresh earnings data created immediate price moves, making the article highly relevant for short‑term traders.
What to watch
Tesla's expense surge reflects scaling of new factories; the capex cut may free cash for near‑term profitability.
Background
The article summarizes the closing market performance on Oct 22, 2026, highlighting earnings releases from Meta, Tesla, and Procter & Gamble amid broader concerns about AI spending and oil‑price‑driven inflation.
Ticker impact
Meta reported Q3 revenue beat but earnings miss and negative free cash flow, causing a 7% share drop.
likely pressure as the market prices in the earnings miss and higher capex range
Earnings miss and capex increase are fresh, material facts that moved the stock 7% intraday.
Tesla posted Q3 earnings of $0.48 EPS, revenue beat, but a 39% expense rise and a lowered full‑year capex forecast, sending the stock down 3.1%.
likely pressure as investors react to higher costs and lower capex guidance
The earnings release is the first report of the miss and guidance cut, driving the price move.
Procter & Gamble delivered better‑than‑expected fiscal 2027 Q1 earnings and revenue, lifting the stock 5.6% for its best day since 2020.
potential upside as the market absorbs the earnings beat and strong volume growth
Fresh earnings beat with a sizable intraday rally qualifies as a primary market‑moving event.
Market effects
Tech sector faces broader pressure from AI‑spending and capex hikes; consumer staples gain relative appeal.
U.S. equity markets opened lower on the Nasdaq, while the Dow held steady, reflecting sector divergence.
The earnings outcomes influence global risk sentiment, especially for AI‑focused investors worldwide.
Counterpoint
Meta's cash‑flow strain may be temporary as AI investments mature; a bounce could occur on longer‑term growth expectations.
Key entities
- CompanyMeta Platforms
Social media giant reporting Q3 results with cash‑flow miss and higher capex.
- CompanyTesla Inc.
EV manufacturer reporting earnings beat but higher expenses and lower capex outlook.
- CompanyProcter & Gamble
Consumer‑goods leader delivering earnings beat and strong volume growth.
