Key takeaways
- S&P 500 and Dow Jones open lower Friday
- AI spending fears deepen after Thursday's technology selloff
- Brent crude approaches $115 amid Middle East disruptions
The U.S. stock market opened lower on Friday, October 23, as investors confronted another round of weakness in artificial intelligence stocks while oil prices approached $115 per barrel amid escalating Middle East tensions.
The S&P 500 declined 0.34% to 7,637.18 at the opening bell, while the Dow Jones Industrial Average fell 171 points, or 0.32%, to 52,696.70. The Nasdaq Composite dropped 0.44% to 25,893.95.
The declines extended Thursday's technology-led selloff, when the Nasdaq plunged 2.6% and semiconductor shares lost nearly 7%.
Why Is the Stock Market Falling Today?
Technology shares entered Friday's session following one of their sharpest declines in months.
Meta lost approximately 7% on Thursday despite beating earnings expectations, after investors focused on the financial consequences of its accelerating AI investments. Chipmakers also faced heavy selling, while CoreWeave came under pressure over financing concerns.
The reaction followed growing scrutiny of Meta's AI spending plans, with the company projecting capital expenditures potentially reaching $145 billion in 2026.
Investors are now looking beyond revenue growth to the cash required to build data centers, purchase advanced processors and secure electricity capacity.
That shift adds to concerns about corporate AI spending, particularly as businesses reassess expensive technology projects.
The weakness also reverses part of Tuesday's technology rebound, when investors briefly returned to semiconductor and AI infrastructure stocks.
Oil Near $115 Adds Another Risk for Stocks
Brent crude climbed as high as $114.72 on Friday, its strongest level since May, after attacks involving Saudi energy infrastructure renewed concerns about Middle Eastern supply.
The advance extends this week's oil price rally, which followed a deadly incident at Saudi Aramco's Shaybah oilfield and attacks affecting regional shipping.
Higher crude prices create another challenge for equity investors because energy costs influence transportation, manufacturing and consumer spending.
Persistent oil inflation could also complicate the Federal Reserve's interest-rate outlook, making it harder to justify easier monetary policy even if economic growth weakens.
What Happens Next for the S&P 500 and Dow Jones?
The distinction between Thursday's and Friday's performances is important.
On October 22, the S&P 500 lost 1.21%, while the Dow edged up 0.02%. Most individual stocks advanced despite the broader index decline, illustrating the influence of heavily weighted technology companies.
Our earlier market breakdown explained how different sector exposures can produce contrasting index performances.