Nasdaq Falls 2.6% as Meta Raises Its 2026 AI Spending Outlook

U.S. stocks slid Thursday as Meta raised its 2026 AI spending outlook, with the Nasdaq Composite down 2.6% and Treasury yields falling as investors sought safer assets.

The Nasdaq’s decline was its largest since June. The Philadelphia Semiconductor Index fell 6.7%, while Meta shares lost about 7%, wiping roughly $124 billion from its market value. Chip, storage, optical-networking and AI cloud companies also fell.

Meta forecast 2026 capital spending of $135 billion to $145 billion, lifting the bottom of its prior range by $5 billion. Future spending commitments, including leases, computing deals and energy agreements, reached about $825 billion.

U.S. Treasury securities rallied as Brent crude rose above $110 a barrel amid rising Middle East tensions. The 10-year Treasury yield fell more than 19 basis points and moved below 5% for the first time in nearly a month.

Investors weighed the scale and payoff of AI investment alongside energy-driven risks to growth and inflation. Upcoming results from Alphabet, Microsoft and Amazon will put more major technology companies’ spending plans in focus.