US stocks closed lower on Friday, October 23, 2026, as uncertainty over artificial-intelligence spending persisted ahead of a busy earnings week and the Federal Reserve’s next policy meeting. The Dow Jones Industrial Average suffered the largest percentage decline among the three major indexes, while the Nasdaq Composite posted a smaller loss.
Key Takeaways
- The Dow fell 1.25%, while the S&P 500 and Nasdaq recorded smaller declines.
- Upcoming results from Alphabet, Microsoft and Amazon will put AI capital spending in focus.
- Energy shares reached a record high as oil rose, bucking the broader market decline.
Table of Contents
- US stocks face a test of AI spending expectations
- Energy gains contrast with the broader decline
- October 27–28 Fed meeting adds a policy checkpoint
- Conclusion
US stocks face a test of AI spending expectations
The week’s volatility left investors questioning whether planned data-centre investment would continue at the pace previously anticipated. Technology stocks were relatively steady on Friday, but that did not remove uncertainty surrounding the AI investment outlook.
Kristina Hooper, chief market strategist at Man Group, said the possibility of lower-than-projected AI data-centre investment next year was giving investors pause. Her assessment described a risk to spending expectations, not an announced reduction by the companies involved.
About one-third of S&P 500 companies are scheduled to report quarterly results in the following week. Alphabet, Microsoft and Amazon are among the major cloud infrastructure companies reporting, making their capital spending plans a key part of the earnings calendar.
S&P 500 companies were on track to report more than 32% growth in third-quarter earnings, based on LSEG IBES data. That remained an earnings-season estimate rather than a completed result for the entire index.
| Item | Details |
|---|---|
| Dow Jones Industrial Average | Closed at 52,209.16; down 1.25% on October 23. |
| S&P 500 | Closed at 7,623.86; down 0.52% on October 23. |
| Nasdaq Composite | Closed at 25,955.34; down 0.21% on October 23. |
Energy gains contrast with the broader decline
The energy sector reached a record high as oil prices climbed. Brent crude touched its highest level since late April amid concerns about further Middle Eastern supply disruption following Houthi attacks in Saudi Arabia.
The divergence showed that Friday’s weakness was not uniform across sectors. Energy shares advanced even as all three major US stock indexes ended lower.
The household backdrop also remained subdued. University of Michigan data showed consumer sentiment edging lower in October and nearing a record low, with rising prices linked to the Middle East conflict weighing on views of the economy.
October 27–28 Fed meeting adds a policy checkpoint
The Federal Reserve’s 2026 meeting calendar lists the next policy meeting for October 27–28, with the decision due on Wednesday, October 28. The calendar establishes the meeting dates, not the likely rate outcome.
The Fed was expected to leave rates unchanged, while investors were looking for signals about a possible December increase. Those expectations remained separate from any announced policy decision.
The November 3 midterm elections, which will determine control of Congress, were another approaching event on investors’ calendars.
Conclusion
The next scheduled tests for US stocks are the major technology earnings releases and the Fed’s October 27–28 meeting. Company spending plans and the policy statement will provide firmer information than the expectations that shaped Friday’s trading.
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Disclaimer
This FinanceVelix article provides general information, not personalized financial, investment, legal, or tax advice. Market prices, interest rates and economic conditions can change; investments carry a risk of loss. Facts reflect the material available when published and may change. Check important information independently and consult a qualified professional when needed. Mentioning an asset, company, or service is not an endorsement.
