The Philadelphia Semiconductor Index fell 6.7% on October 22, its worst day since June 23. The Nasdaq lost 2.6%, its steepest drop since early June, and the S&P 500 fell about 1.2%. The trigger: Meta's third-quarter free cash flow turned negative at minus $2.12 billion, its first cash outflow in more than a decade. Intel, AMD, Sandisk and Marvell each fell more than 8%. The 10-year Treasury yield dropped about 17 basis points to 4.97% as money moved to safety.
1
Meta: commitments climb to $825 billion
Meta closed down about 7% near $647. It raised the floor of full-year capex guidance to a $135-145 billion range. Off-balance-sheet commitments through 2036 rose to $825 billion from $700 billion in July. Its five-year credit default swap spread hit a record. Adjusted EPS of $7.40 still beat the $6.80 consensus.
2
Chipmakers take the heaviest hit
The chip index has powered much of this bull market. Intel, AMD, Sandisk and Marvell each fell more than 8%. Western Digital beat estimates and still slid about 5% after hours. The question is not demand. It is financing cost and payback time.
3
Bonds catch the outflow
The 10-year yield slipped back below 5% to about 4.97%, a near one-month low. The Fed meets October 27-28 while higher oil lifts inflation expectations. Stocks and bonds diverged: money rotated inside US assets rather than leaving them.
AI capex is not stopping. It is now being asked to show cash flow. That is healthy market discipline.
Key FAQ
Q1: How far did US stocks fall on October 22?
The chip index fell 6.7%, its worst day since June 23. The Nasdaq lost 2.6% and the S&P 500 about 1.2%. Intel, AMD and other chipmakers fell more than 8%.
Q2: Why did Meta fall despite beating estimates?
Free cash flow turned negative at minus $2.12 billion, off-balance-sheet commitments rose to $825 billion, and its five-year CDS spread hit a record. Investors worry about financing costs.
Q3: What did it mean for bonds and rates?
Money moved into Treasuries. The 10-year yield fell about 17 basis points to 4.97%, a near one-month low, ahead of the Fed's October 27-28 meeting.
Sources
- ✓ Reuters via Yahoo Finance — S&P 500, Nasdaq end sharply lower as revived AI doubts ignite tech selloff — 2026-10-22
- ✓ CNBC — Meta stock sinks nearly 7% as AI spend pushes free cash flow negative — 2026-10-22
- ✓ FXStreet — Meta Platforms' negative FCF, expanding capex lead NASDAQ lower — 2026-10-22
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