Global Tech Stocks Tumble as AI Spending Fears Grip Markets
The Nasdaq fell 2.6% — its steepest drop since June — as investors questioned the vast sums Big Tech is pouring into artificial intelligence, hammering semiconductor shares by nearly 7%.
On October 23, 2026, global equity markets were rocked by a broad technology sell-off driven by deepening investor anxiety over the sustainability of Big Tech's enormous AI spending programmes. The Nasdaq Composite dropped 2.6%, its worst single-day loss since June, while the S&P 500 declined 1.2%. The Philadelphia Semiconductor Index bore the brunt of the selloff, plunging 6.7%, as investors fled chipmakers dependent on soaring data-centre orders. The immediate catalyst was Meta Platforms' latest earnings report, which revealed quarterly capital expenditure of $34.9 billion — exceeding the company's own operating cash flow of $32.8 billion and turning free cash flow negative for the first time. Meta also raised its full-year capital expenditure guidance to between $135 billion and $145 billion. The concerns were not confined to the United States: South Korea's KOSPI sank below 5,400, dragged down by its large semiconductor sector, while European tech names also fell. Market strategists noted that investors are increasingly scrutinising when — and whether — the tens of billions being committed to AI infrastructure will translate into genuine returns. The selloff spread to bonds in the opposite direction, with yields dropping as traders sought safety.
