AI Stock Selloff Drags Nasdaq Down Nearly 5% as Earnings Season Opens
A sharp selloff in artificial intelligence stocks, triggered by a gap between OpenAI's revenue figures and inflated market expectations, pushed the Nasdaq down 4.48% in its worst weekly performance in months, with the semiconductor index on its longest losing streak since 2008.
Global equity markets faced significant turbulence as a broad selloff in artificial intelligence stocks accelerated into the week of October 19, 2026. The technology-heavy Nasdaq Composite fell 4.48% on the week, while the small-cap Russell 2000 dropped 3.05%. The trigger was a reported gap between OpenAI's actual revenue run rate of roughly $50 billion in September versus a widely circulated figure of $68 billion, stoking fears that AI investment returns would not match the enormous capital being deployed. The Philadelphia Semiconductor Index entered its longest consecutive losing streak since 2008, partly driven by financing concerns surrounding CoreWeave, which carries approximately $50 billion of debt. Investors began rotating out of large-cap growth stocks into value and defensive sectors. Wall Street's attention now turns to quarterly earnings beginning the week of October 19, with Meta Platforms, Netflix, Procter & Gamble and GE Aerospace all reporting. Analysts noted the market has shifted from asking whether AI will succeed to asking who will bear the cost of getting there and what will remain for shareholders once debts and capital expenditures are paid.
