Update: US Equity Indexes Mixed Amid Sliding Technology Mega-Caps, Crude Oil

12:19 PM EDT, 10/22/2026 (MT Newswires) -- US equity indexes were mixed after midday Thursday as Meta Platforms' (META) quarterly results helped trigger a sell-off in the so-called AI trade while crude oil prices surged. The Nasdaq Composite slumped 2.2% to 26,099.2, and the S&P 500 dropped 1.3% to 7,654.3. The Dow Jones Industrial Average was little changed at 52,848.7, after trading lower earlier in the session. Technology and communication services led decliners. Meta Platforms (META) reported a $9.89 billion litigation settlement charge over teen mental health and social media. The firm now expects capital expenditures of $135 billion to $145 billion, versus its previous guidance of $130 billion. Its board approved a new class of publicly listed, non-voting common stock from January 2027. Meta's shares slumped 5.2%, among the worst performers on the S&P 500 and the Nasdaq. "High-growth technology stocks came under renewed pressure after earnings from Tesla and Meta Platforms failed to fully ease concerns about the scale of AI-related spending," a DA Davidson research note said. "A rebound in oil prices further weighed on investor sentiment." Tesla (TSLA), another index heavyweight, saw shares slip after the company reported lower Q3 adjusted earnings and revenue. Fifteen of the 20 worst-performing stocks in a category with a market capitalization exceeding $200 billion each were from the technology sector, according to data compiled by Finviz. The iShares PHLX Semiconductor Exchange Traded Fund (SOXX), with about $48.43 billion in assets under management, slumped 5.2%, reflecting a pullback from the AI trade. Iran's Islamic Revolutionary Guard Corps said renewed attacks by the US could prompt Tehran to invade neighbouring countries and hit bases used in US military operations as part of its new "offensive" strategy, Al Jazeera, a Middle Eastern broadcaster, reported. The front-month West Texas Intermediate crude oil contract jumped 1.8% to $98.90 per barrel, and global benchmark Brent advanced 2.6% to $111.68 per barrel.