US Stocks Fall on AI Cost Concerns and Middle East Energy Risks

Key summary

The Dow Jones Industrial Average closed lower by 652.82 points (1.23%) on Friday, October 23, 2026, as investors weighed rising costs for artificial intelligence infrastructure, uncertainty over US interest rates ahead of the Federal Reserve's upcoming policy meeting, and geopolitical risks to energy supplies following attacks in Saudi Arabia by the Houthis. The S&P 500 dropped 39.75 points (0.52%) to 7,623.68, while the Nasdaq Composite fell 53.52 points (0.21%) to 25,955.34. Weekly performance showed the S&P 500 down 0.5%, the Nasdaq down 0.7%, and the Dow up 0.4% for a third consecutive week of gains. Specific sector movements included a 2.5% rise in energy stocks to record highs driven by Brent crude prices, a nearly 8% drop in AT&T and T-Mobile shares after reports that SpaceX is considering deploying thousands of cell towers as a fourth US wireless carrier, and a 3.7% decline in American Express shares despite profit guidance increases but amid plans to cut 5% of its workforce.