AI stocks sink global markets; Nvidia, Meta, CoreWeave slide

What happened: AI-linked stocks dragged markets lower worldwide on 22 October. Oil prices also jumped, according to AP via BNN Bloomberg.

The numbers: The S&P 500 fell 1.2% to 7,663.43, its worst day since July. The Nasdaq Composite dropped 2.6% to 26,008.86. The Dow rose 11.89 points to 52,867.98.

The context: Two of every three S&P 500 stocks rose, but big-tech losses masked the gains. The report says AI-related stocks have been swinging on worries that their boom may be under threat. Analysts cited in related coverage point to the rising cost of borrowing to build data centres and buy chips.

Who's affected: Nvidia fell 4.4%. As the largest US company by market value, it was the biggest drag on the S&P 500.

Meta lost 7% after revenue beat expectations but profit missed. It also plans a new stock class to fund AI spending.

CoreWeave dropped 10.1% amid concerns about the debt it took on to buy Nvidia chips.

The catch: Lam Research fell 11.8% despite stronger-than-expected results. The midpoint of its profit forecast came in slightly below analyst estimates, and the stock had risen 52.4% this year. Tesla fell 3.1% after a stronger-than-expected profit but weaker revenue than forecast.

Why it matters: The selling spread beyond Wall Street. South Korea's Kospi fell 3.5%, Hong Kong's Hang Seng 3% and Japan's Nikkei 225 2.7%. France's CAC 40 fell 1.4%.

The details: Brent crude rose 4% to $113.17, its highest in five months, amid uncertainty over the war with Iran. The 10-year Treasury yield fell to 4.97% from 5.13%.

What's next: The notes give no scheduled catalysts. The report points to borrowing costs for data-centre and chip spending, and to Brent crude, as the pressures on AI-linked stocks.