Top U.S. Stories

  • Tech sell-off drags the Nasdaq. The Nasdaq Composite fell 2.6% to 26,008.86, its worst session since June, as worries over AI spending and the cost of capital resurfaced. The S&P 500 lost 1.21% while the Dow ended roughly flat. Why it matters: The “earnings beat everything” mood of earlier this week cracked in a single session, showing how concentrated market leadership has become.
  • Meta slides about 7% after earnings. Despite announcing a 2-for-1 stock split alongside its results, Meta shares fell nearly 7%. Tesla ended down about 3% after its report.
  • Oil hits its highest level since May. Brent crude topped $113 after President Trump hinted at action on Iran, while Saudi Aramco told non-essential staff at its eastern headquarters to evacuate. Why it matters: Higher fuel costs feed directly into inflation just as the Fed prepares for next week’s meeting.
  • Jobless claims fall to a three-month low. Initial claims dropped to 194,000, the lowest since July, pointing to a still-resilient labor market.
  • Trump blames Iran for oil prices before midterms. Trump accused Tehran of trying to push up oil prices ahead of the midterm elections.

Compass Insight

Thursday was a reminder that AI optimism has a price tag. Meta beat on revenue yet fell sharply, because investors are now focused less on this quarter’s profits and more on how much data-center spending lies ahead. Debt-heavy AI names such as CoreWeave were hit hardest, while the Dow barely moved, so this looks more like a rotation out of crowded trades than a broad collapse. At the same time, Brent above $113 adds an inflation headache. In the short term, watch next week’s FOMC decision and any U.S. move on Iran. Over the longer run, the key question is whether AI investment can earn back its cost; that answer will shape tech valuations and the index funds that lean heavily on them.

Markets

  • Dow: 52,867.98, +0.02%; S&P 500: 7,663.43, -1.21%; Nasdaq: 26,008.86, -2.6%
  • Oil: Brent $113.17 (about +4%); WTI $99.47 (+2.39%)
  • Rates & FX: The 10-year yield eased to around 5%; the yen strengthened as a safe haven, with USD/JPY at 157.05 (ECB reference, Oct 22) and about 156.70–80 at the New York close.
  • Tokyo: The Nikkei plunged 1,713.40 yen to 62,907.84, led by chip stocks.

Stocks in Focus

  • Meta (META): Down about 7% despite a stock split announcement, as AI capex worries dominated.
  • CoreWeave (CRWV): Fell about 10% on concerns about debt-heavy balance sheets.
  • Blackstone (BX): Rose after an upbeat outlook for investment exits.

Not a recommendation to buy or sell any security.

Sources:

Auto-generated and AI-written. Not investment advice.