Tech stocks fell sharply on Thursday, October 22, as worries about the AI trade returned. The tech-heavy Nasdaq Composite dropped 2.6% to 26,008.86, and the S&P 500, which tracks the 500 biggest US companies, fell 1.2% to 7,663.43. The Dow Jones Industrial Average barely moved, edging up 0.02% to 52,867.98. The losses were concentrated in tech: most US stocks actually rose, but the biggest tech companies are so large that their drop pulled the main indexes down. The trigger was earnings from Tesla and Meta. Meta fell about 7% despite strong quarterly results and a 2-for-1 stock split (which gives shareholders two shares for each one they own, at half the price, without changing the total value). Tesla slipped about 3%, SpaceX gave back much of Wednesday’s surge, and chip stocks fell again. Geopolitics added to the nerves: oil prices jumped on reports that the US and Israel plan to renew attacks on Iran. As investors sought safety, US Treasury yields (the interest rates the US government pays to borrow) fell sharply. The Federal Reserve meets next week, on October 27–28.
Daily Digest ·
Tech stocks fell sharply on Thursday, October 22, as worries about the AI…
What moved Wall Street and the PSEi, and what it means for your money, in plain language.
Today, in Two Lines
The day’s biggest story in each market.
Tech stocks fell sharply on Thursday, October 22, as worries about the AI trade returned.
The BSP surprised markets on Thursday by raising its key interest rate by 0.5 percentage points (50 “basis points”) to 5.50%.
US & PH Markets at Last Close
Where each market finished its most recent trading session before this issue went out.
US markets
| S&P 500 | 7,663.43 -0.64% |
| Dow Jones | 52,867.98 +0.71% |
| Nasdaq | 26,008.86 -1.57% |
| 10-Yr Treasury Yield | 4.95% |
Philippine markets
| PSEi | 5,779.73 -0.72% |
| USD/PHP | 63.54 +0.84% |
| BSP Rate | 5.50% |
Winners & Losers
The stocks that moved most, and why.
USUnited States
- CRWV CoreWeave-10.1%
Fell again as worries about debt-funded AI spending resurfaced
- LRCX Lam Research-10.0%
Among the worst S&P 500 and Nasdaq 100 performers after its earnings report (morning figure)
- SPCX SpaceX-9.1%
Gave back much of Wednesday’s post-earnings surge as AI stocks sold off
- META Meta Platforms-7.0%
Fell despite strong quarterly results and a 2-for-1 stock split announcement
- TSLA Tesla-3.1%
Slipped after its earnings report as the AI and tech sell-off widened
PHPhilippines
- AREIT AREIT Inc.+1.8%
Led index gainers on a broadly weak day
- CNPF Century Pacific Food-4.3%
Biggest drag on the index
Today’s Full Story
USUnited States
PHPhilippines
The BSP surprised markets on Thursday by raising its key interest rate by 0.5 percentage points (50 “basis points”) to 5.50%. Only 2 of 22 analysts polled by BusinessWorld expected a hike that big. It was the BSP’s fourth straight increase this year, adding up to 1.25 percentage points since April, and its largest single hike since February 2023. The central bank said it needed a strong response because inflation (the rate at which prices rise) jumped to 7.2% in September, far above its 2–4% target. BSP Governor Eli Remolona said the board worried it was falling “behind the curve,” and the BSP said it is open to raising rates again at its December 17 meeting. Philippine stocks ended their five-day winning streak. The PSEi, the index of the 30 biggest companies on the Philippine Stock Exchange, fell 0.72% to 5,779.73 as investors took profits and worried that higher borrowing costs could slow the economy. Even so, foreign investors were strong net buyers, purchasing about ₱1.2 billion more than they sold. The peso weakened again despite the bigger hike, closing at another record low of ₱63.52 per dollar after touching ₱63.545 during the day.
US–PHHow US news affects the Philippines
Thursday showed the limits of what the BSP can do alone. A bigger rate hike usually helps a currency because higher local interest rates make peso savings and investments more attractive. But the peso still fell, because the biggest pressures come from outside the country: oil jumped on fears of renewed US and Israeli attacks on Iran, and the US dollar stays strong while the Fed keeps rates high. The Philippines imports almost all its fuel and pays in dollars, so every oil spike raises demand for dollars. Governor Remolona also stressed that the BSP sets rates to fight inflation, not to defend a specific exchange rate. For ordinary Filipinos, the jumbo hike means loans for homes, cars, and businesses will likely get more expensive in the coming months, while savings accounts and time deposits may pay a bit more. The goal is to cool inflation, which the BSP says hits the poorest households hardest. OFW families still benefit from the weak peso, since each dollar sent home buys more pesos, but higher fuel and food prices eat into that gain. Next week’s Fed decision will show whether pressure from the US eases or adds to the strain.
Sa Taglish
Ipinakita ng Thursday na may limitasyon ang kayang gawin ng BSP nang mag-isa. Karaniwan, pag nagtaas ng rates, lumalakas ang currency kasi mas nakaka-attract mag-ipon o mag-invest in pesos. Pero bumagsak pa rin ang piso, kasi ang pinakamalaking pressure ay galing sa labas ng bansa: tumaas ang langis dahil sa balitang aatakihin ulit ng US at Israel ang Iran, at malakas pa rin ang dollar habang mataas ang rates ng Fed. Halos lahat ng fuel natin imported at binabayaran in dollars, kaya bawat taas ng langis, mas maraming dollar ang kailangan natin. Nilinaw din ni Governor Remolona na nagtataas sila ng rates para labanan ang inflation, hindi para ipagtanggol ang isang partikular na palitan. Para sa ordinaryong Pinoy, ibig sabihin ng jumbo hike na malamang mas mahal na ang pag-utang para sa bahay, kotse, at negosyo sa mga susunod na buwan, pero baka tumaas nang konti ang interest ng savings at time deposits. Ang goal ay pababain ang inflation, na sabi ng BSP ay pinakamabigat sa pinakamahihirap na pamilya. Para sa mga pamilyang may OFW, panalo pa rin sa palitan kasi mas maraming piso ang bawat dollar na padala, pero kinakain din ‘yan ng mas mahal na gasolina at pagkain. Sa Fed decision next week, malalaman natin kung gagaan o lalala ang pressure galing US.
USD/PHP
Biggest mover: Nasdaq -1.57%
What to Watch
- The Fed’s decision on October 27–28 is the next big test for the dollar and the peso, after the BSP’s surprise jumbo hike.
- Watch oil prices and any renewed US and Israeli strikes on Iran, since higher fuel costs are the biggest outside threat to the peso.
- Foreign investors bought about ₱1.2 billion of Philippine stocks even as the PSEi fell, so watch whether that buying continues.
Sources
The original reporting behind this issue.
US markets
- How major US stock indexes fared Thursday 10/22/2026
A fresh wave of AI-stock selling pulled markets lower worldwide, dragging the S&P 500 down 1.2%.
- How major US stock indexes fared Thursday 10/22/2026
The Nasdaq fell 2.6% while the Dow edged up, as nervous investors pushed Treasury yields lower and oil rose on Iran war worries.
- How major US stock indexes fared Thursday 10/22/2026
Tech’s losses were heavy enough to hide gains elsewhere, as most US stocks actually rose.
- Stock market today: S&P 500, Nasdaq tanks as tech stocks sink amid AI trade worries, Meta shares plummet
Tech stocks fell after earnings from Tesla and Meta revived worries about AI spending.
- Stock Market Today: Major Indexes Dive, Led Lower by Tech Stocks; Oil Prices Surge on Middle East Escalations
Indexes slid as chip and AI stocks sold off, while oil jumped on reports of planned renewed attacks on Iran.
PH markets
- PSEi snaps 5-day rally on profit-taking
Local stocks fell as investors took profits after a five-day rally and reacted to the BSP’s policy decision.
- PSEi halts climb as BSP surprises with jumbo hike
Philippine shares ended their winning streak after the BSP’s surprise 50-basis-point hike, with the peso’s slide adding to concerns.
- BSP surprises with jumbo rate hike, signals further tightening
The BSP raised its key rate to 5.5%, its highest in nearly two years, and said it is ready to tighten further.
- Bangko Sentral raises interest rates to 5.50% as inflation, peso woes mount
The BSP delivered its fourth straight hike after September inflation jumped to 7.2%.
- Peso hits third straight record-low close as PSEi falls
The peso closed at a record low of ₱63.52 while the PSEi fell on oil-price pressure and rate uncertainty.
Cross US–PH
- BSP delivers ‘jumbo’ 50-basis-point rate hike
The BSP said the inflation outlook drove its decision and reiterated that it does not set rates to support the peso.
- Inflation risks prompt BSP to hike rates anew
The BSP made its biggest rate increase in more than three years as inflation pressures worsened.
- Peso hits third straight record-low close as PSEi falls
Reports pointed to a widening balance of payments deficit and higher oil import costs as key pressures on the peso.
- How major US stock indexes fared Thursday 10/22/2026
Oil prices jumped on worries about the war with Iran as Treasury yields fell sharply.
Terms to know
- Stock
- A tiny piece of ownership in a company. Buying a company's stock means you own a small part of that business.
- Stock market
- The overall marketplace where stocks are bought and sold. When we say 'the market' or show numbers like the S&P 500 or PSEi, we mean a snapshot of how stocks overall are doing that day.
- Interest rate
- The cost of borrowing money, or what you earn for saving it. When rates go up, loans get pricier, but savings can earn a bit more.
- Inflation (CPI)
- When everyday prices rise over time, so the same money buys less than before. CPI is the number used to measure it.
- Fed (Federal Reserve)
- The US central bank. It sets interest rates, which affect how expensive it is to borrow money, even here in the Philippines.
- BSP (Bangko Sentral ng Pilipinas)
- The Philippine central bank, PH's equivalent of the Fed.
- PSEi
- A single number that tracks how the Philippines' biggest company stocks are doing overall, like a report card for the PH stock market.
- bps (basis points)
- A small unit for measuring interest rate changes: 100 bps = 1%. Used because rate changes are usually tiny.
- 10-Yr Yield
- The interest rate the US government pays to borrow money long-term. When it rises, loans and mortgages tend to get pricier everywhere, not just in the US.
- USD/PHP
- How many pesos it takes to buy one US dollar.
- OFW remittances
- Money sent home by overseas Filipino workers, a key driver of peso demand.
Summaries, mover explanations, and forward-looking notes in this issue are AI-written from real market data and sourced news. Not financial advice.