Nasdaq Falls 0.86% as AI Stocks Slide, Dow Gains 0.57% Amid $111 Oil Surge

Mumbai, 20 October 2026: US stocks opened mixed on Tuesday as renewed weakness in artificial intelligence (AI)-linked shares and a sharp rise in crude oil prices weighed on technology stocks, while gains in healthcare and consumer-facing companies supported the Dow Jones Industrial Average. At 9:48 a.m. Eastern Daylight Time (EDT), the Dow rose 297.69 points, or 0.57%, to 52,263.72, while the S&P 500 slipped 10.13 points, or 0.13%, to 7,680.60. The Nasdaq Composite fell 226.56 points, or 0.86%, to 26,204.33, according to the latest market snapshot provided. The Russell 2000 gained 3.16 points, or 0.12%, to 2,731.45 in an earlier update.

The opening-session divergence followed Monday’s mixed close and came as oil prices climbed amid escalating geopolitical tensions in the Middle East. Investors were also monitoring September housing data, corporate earnings and the cost of financing AI infrastructure. Major technology companies, semiconductor manufacturers and data-centre businesses faced renewed selling pressure, while several healthcare, pharmaceutical, retail and financial services stocks recorded gains.

Nasdaq Falls 0.86% as Semiconductor Selling Pressures Technology Stocks

The Nasdaq Composite declined to 26,204.33, down 226.56 points, or 0.86%, in early trading. The index had closed at 26,430.89 in the previous session, following a gain of more than 1% on Monday. Its opening decline reflected renewed weakness across several large technology and semiconductor companies after the previous session’s recovery.

Among major Nasdaq-listed companies, Nvidia fell 1.68%, Microsoft declined 1.40%, Advanced Micro Devices (AMD) dropped 1.64%, and Intel lost 2.92%. Micron Technology fell 1.43%, while ASML declined 1.63%. Semiconductor equipment manufacturers recorded steeper losses, with Lam Research down 3.69%, Applied Materials falling 2.74%, and KLA declining 3.27%.

Other technology-related stocks also weakened. Palantir Technologies fell 1.97%, CrowdStrike declined 2.63%, and Palo Alto Networks lost 3.20%. Arm Holdings dropped 4.07%, while Marvell Technology declined 3.49%. These movements contrasted with gains among selected software companies, including Intuit, up 2.93%, and Adobe, up 2.24%, in the supplied Nasdaq-100 heatmap.

The index’s previous-session performance had been stronger, with the Nasdaq Composite rising 1.11% to 26,430.89 on Monday. The reversal on Tuesday showed that the opening recovery had not extended uniformly across the technology sector.

Dow Jones Rises 0.57% as Healthcare Gains Offset Technology Losses

The Dow Jones Industrial Average advanced 297.69 points, or 0.57%, to 52,263.72 during the opening session. The index had ended Monday at 51,966.03, down 36.38 points, or 0.07%. Its early advance on Tuesday contrasted with losses in the Nasdaq and the S&P 500.

Healthcare stocks contributed to the Dow’s stronger performance. Merck gained 3.66%, while Johnson & Johnson advanced 2.40%, UnitedHealth Group rose 2.20%, and Amgen increased 2.25%. These gains helped offset declines in several technology and industrial components.

Among consumer-facing companies, Home Depot rose 2.13%, McDonald’s gained 1.65%, and Walmart advanced 0.89%. Financial stocks also moved higher, with JPMorgan Chase gaining 1.14%, American Express rising 1.24%, and Visa advancing 0.73%.

Industrial shares were mixed. 3M climbed 5.09% in the supplied Dow heatmap, while Caterpillar declined 1.83%. Boeing slipped 0.45%, whereas Honeywell gained 0.73%. Technology constituents remained under pressure, with Nvidia down 1.70%, Microsoft lower by 1.35%, Apple down 0.69%, and Cisco Systems falling 1.04%.

The Dow’s gains reflected the differing performance of its constituent companies, rather than a broad advance across every major sector.

Also Read: What Is the New York Stock Exchange (NYSE)?

S&P 500 Slips 0.13% as Technology and Industrial Shares Fall

The S&P 500 declined 10.13 points, or 0.13%, to 7,680.60 in the opening session. The benchmark had closed at 7,690.73 on Monday, gaining 0.41%. Tuesday’s early decline came as losses in technology and selected industrial companies offset advances in healthcare, financial services and consumer-related stocks.

Within the technology sector, Nvidia fell 1.70%, AMD declined 1.89%, and Intel dropped 2.75%. Lam Research lost 3.69%, while Applied Materials fell 2.65%. Data-centre and networking-related shares also weakened, with Arista Networks declining 2.75% and Dell Technologies falling 2.52%.

Meta Platforms dropped 3.06%, while Alphabet’s Class A shares fell 0.65% and its Class C shares declined 0.59%. Amazon slipped 0.58%, and Tesla fell 0.60%. These losses contributed to the pressure on several of the benchmark’s large technology and consumer-related constituents.

Healthcare and financial services recorded gains. Eli Lilly rose 4.75%, while Merck gained 3.66%, Pfizer advanced 2.51%, and AbbVie climbed 2.12%. Within financial services, BlackRock gained 1.99%, while S&P Global advanced 2.25%.

Industrial shares were mixed, with Eaton falling 4.39%, General Electric Vernova declining 3.09%, and GE Aerospace dropping 3.82% in the supplied heatmap. By contrast, RTX rose 1.61%, and Lockheed Martin gained 1.63%.

Russell 2000 Gains 0.12% as Small-Cap Stocks Deliver Mixed Results

The Russell 2000 Index rose 3.16 points, or 0.12%, to 2,731.45 in the earlier opening-session snapshot. It had closed at 2,728.30 on Monday, recording a gain of 0.25%. The index’s modest advance contrasted with the decline in the Nasdaq Composite and reflected mixed movements among smaller US-listed companies.

Individual stocks showed substantial differences in performance. Braze surged 50.85% to $45.31, gaining $15.27, while Klaviyo advanced 11.62% to $19.56. Equifax rose 10.68% to $175.49, and Hasbro gained 7.27% to $105.65. Other notable gainers included MSCI, up 6.76% to $601.59, and TransUnion, higher by 6.69% to $78.01.

However, several companies recorded declines. Cleveland-Cliffs fell 8.33% to $12.94, while IREN declined 6.92% to $25.81. Cipher Digital dropped 6.15% to $8.39, and MaxLinear fell 6.09% to $72.42. Sea Limited also declined 6.09% to $83.08.

Among technology-related smaller companies, FormFactor lost 4.48%, while Semtech declined 4.95%. Astera Labs and Lumentum were also identified among the technology-related names facing selling pressure in the opening market coverage. The differences across individual stocks highlighted the uneven performance within the small-cap segment.

Oil Climbs Above $111 as Middle East Tensions Raise Supply Concerns

Crude oil prices rose sharply on Tuesday as escalating Middle East tensions heightened concerns about potential disruptions to global energy supplies. Brent crude futures reached $111.75 per barrel, a five-month high, before trading near $111. West Texas Intermediate (WTI) also advanced, with separate market snapshots placing prices at $108.65, $105.50 and $100.78 per barrel at different points during the session.

The rally followed reports of attacks by Iran-backed Houthi forces on Saudi Arabian energy, airport and military targets. Reports also cited two oil tankers catching fire after striking naval mines in the Strait of Hormuz. Separately, Iran’s Islamic Revolutionary Guard Corps spokesperson threatened to target undersea communication cables in the strategic waterway.

These developments intensified concerns about energy infrastructure and shipping security in a region critical to global oil transportation. Higher crude prices also raised questions about fuel costs and their potential impact on businesses and economic growth.

Energy stocks recorded mixed movements despite rising oil prices. Chevron gained 0.20% in the supplied Dow heatmap, while Exxon Mobil declined 0.24% in the S&P 500 snapshot.

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September Housing Starts Fall 5.2% to 1.22 Million Units

US housing data offered another indicator of economic conditions during Tuesday’s session. Privately owned housing starts fell 5.2% month on month to a seasonally adjusted annual rate of 1.221 million units in September, down from a revised 1.275 million in August. The figure was 7.4% below September 2025 levels and missed the expected 1.305 million units.

Single-family housing starts declined 4.6% to an annualised rate of 859,000 units, indicating weaker residential construction activity.

Building permits, however, showed relative resilience. September permits totalled 1.40 million at a seasonally adjusted annual rate, compared with 1.394 million in August. The reading exceeded the consensus estimate of 1.387 million, although it remained below year-earlier levels.

The divergence between declining housing starts and slightly stronger permits suggested that ongoing construction activity and the pipeline of authorised projects were moving differently. Investors were also awaiting pending home sales data scheduled for Tuesday.

Housing indicators remain important for markets because mortgage costs influence affordability, construction investment and demand for housing-related goods and services. The latest figures provided additional insight into the US economy as trading began.

Treasury Yields Near 5.1% Keep Borrowing Costs in Focus

US Treasury yields remained an important part of the market backdrop on Tuesday. The 10-year Treasury yield stood at approximately 5.1% to 5.11%, while the two-year Treasury yield was around 4.76% in the supplied updates.

Government bond yields influence borrowing costs across financial markets, including financing for businesses, mortgages and other loans. Their movement also forms part of the economic information used to assess the outlook for inflation and monetary policy.

The rise in oil prices added another variable to this picture. Higher energy costs can feed into transportation and production expenses, while the strength of industrial activity provides a separate indication of economic demand. The available market reports described a combination of firm production data, elevated energy prices and continued uncertainty over the cost of financing large-scale AI infrastructure.

According to the supplied update on the CME Group’s FedWatch tool, markets were pricing in an 82.8% probability that the Federal Reserve would leave interest rates unchanged after its October meeting. This was a snapshot of market-implied expectations, rather than a confirmed policy decision.

The Federal Reserve’s eventual policy decision will depend on its assessment of economic conditions and inflation. Tuesday’s market activity unfolded as investors monitored economic releases, company earnings and developments affecting energy prices.

AI Infrastructure Concerns Weigh on Nvidia, CoreWeave and Semiconductor Stocks

AI-linked stocks came under renewed pressure after a brief recovery during Monday’s session. Investors had recently been assessing the financing requirements of large data-centre projects and whether anticipated demand would support the substantial capital expenditure associated with AI computing infrastructure.

Nvidia slipped marginally in the premarket update, while Apple fell around 1.2% in an earlier market snapshot. CoreWeave and Nebius Group declined approximately 3% in premarket trading, according to the supplied coverage. In the Nasdaq-100 heatmap, Nvidia was down 1.68%, while Intel fell 2.92% and Lam Research declined 3.69%.

CoreWeave’s credit-market indicators also attracted attention. The spread on its five-year credit default swaps rose to around 1,121 basis points, increasing 2.22% on the day and more than 17% over the preceding week. Credit default swaps are financial contracts used to obtain protection against a borrower’s default. The reported spread movement indicated a higher cost of credit protection for the company.

The latest weakness followed a difficult period for AI-related shares, with the supplied coverage reporting that CoreWeave had fallen more than 25% in the previous week. The stock subsequently attempted to recover some of those losses before the latest trading session brought renewed pressure.

South Korean AI company Elice also recorded a decline of more than 30% during its public market debut, according to the reports. The company’s performance added to the day’s developments in AI-related equities, although the available information did not establish a direct causal relationship between its listing and movements in individual US stocks.

Elsewhere in the sector, ABB reported record third-quarter orders of $12 billion, representing a 40% increase, supported by a triple-digit rise in orders from its data-centre segment. Despite the reported business performance, ABB’s shares declined approximately 6% in the cited update. Schneider Electric fell around 3%, while Siemens Energy declined approximately 4% in the same premarket coverage.

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Braze Surges 50.85% While Cleveland-Cliffs Falls 8.33%

Individual stock movements remained pronounced during Tuesday’s opening session, with several companies recording double-digit gains or steep declines.

Braze (BRZE) was among the strongest gainers in the supplied stock screener. Its shares rose $15.27, or 50.85%, to $45.31, with trading volume reaching 18.322 million shares, compared with a three-month average volume of 2.447 million shares. The company had a reported market capitalisation of $5.147 billion.

Other gainers included Klaviyo (KVYO), which rose 11.62% to $19.56, and Equifax (EFX), which gained 10.68% to $175.49. Hasbro (HAS) advanced 7.27% to $105.65, while MSCI (MSCI) gained 6.76% to $601.59. Northrop Grumman (NOC) rose 6.15% to $542.07 in the supplied stock table, while Eli Lilly (LLY) gained 4.68% to $1,298.44.

On the downside, Cleveland-Cliffs (CLF) declined 8.33% to $12.94, a decrease of $1.17. Regencell Bioscience (RGC) fell 7.16% to $9.33, while IREN (IREN) dropped 6.92% to $25.81. MaxLinear (MXL) declined 6.09% to $72.42, and Sea Limited (SE) lost 6.09% to $83.08.

Other notable decliners included Tower Semiconductor (TSEM), down 6.02% to $188.24, and AST SpaceMobile (ASTS), which fell 5.92% to $39.39. CoreWeave (CRWV) declined 5.70% to $57.63 in the supplied stock screener.

The range of individual movements demonstrated that the opening session contained sharp advances and declines across technology, industrial, consumer and other listed companies. These stock-specific changes occurred alongside the broader divergence between the major US indices.

Earnings From Netflix, Tesla and Meta Put Results in Focus

Corporate earnings remained in focus on Tuesday, with Netflix and SpaceX scheduled to report third-quarter 2026 results after market close. Tesla and Meta Platforms were due to announce results on Wednesday, 21 October.

According to the supplied earnings preview, Netflix was expected to post earnings of approximately $0.82 per share on revenue of $12.88 billion. Investors were watching streaming revenue and subscriber performance. SpaceX was also scheduled to report results after Tuesday’s close, with earnings expectations of $0.14 per share on revenue of $12.74 billion.

Tesla’s results were expected to draw attention to automotive margins, electric vehicle demand and forward guidance. Meta Platforms was also in focus, particularly for advertising revenue, AI spending and adoption of its Muse personal assistant.

Meanwhile, General Motors reported third-quarter results above Wall Street expectations, supported by truck sales and subscription revenue. The company raised its free cash flow outlook and announced a multiyear $20 billion share buyback programme. However, shares fell amid concerns over commodity inflation costs, which could approach $2 billion.

GE Aerospace Raises Profit Outlook as Services Revenue Grows 21%

GE Aerospace raised its 2026 adjusted profit forecast to $8.00-$8.10 per share, up from $7.65-$7.85, following stronger demand for engine maintenance and spare parts. Commercial engines and services revenue rose 21% to $10.34 billion, while shares gained approximately 1.2% in premarket trading.

RTX Corporation reported third-quarter adjusted earnings of $2.26 per share on revenue of $24.97 billion, exceeding estimates of $1.78 per share and $24.08 billion, respectively. Its shares rose around 1% in premarket trading.

Northrop Grumman posted third-quarter earnings of $7.89 per share, above the $7.18 estimate. Revenue reached $11.12 billion, slightly below expectations of $11.14 billion. Its shares gained in the supplied updates.

Meanwhile, 3M raised its annual profit forecast, citing cost controls and higher prices. It also expanded its commercial relationship with Amazon, including a warrant for over $521 million in 3M stock.

Steel Dynamics shares fell approximately 5.3%-6.4% after earnings and margins missed expectations, despite revenue exceeding estimates. Its customer backlog was 50% higher year on year, extending into 2027.

Also Read: What Are Fractional Shares? 

Tradeweb Agrees to Buy Trumid for $2 Billion

Tradeweb Markets agreed to acquire Trumid Holdings for approximately $2.0 billion, according to the supplied corporate update. The transaction would add an electronic corporate bond marketplace to Tradeweb’s existing trading platform, linking primary bond issuance with secondary-market trading.

The proposed combination is intended to broaden the company’s credit trading coverage across developed and emerging markets. Completion is targeted for the first half of 2027, subject to the transaction’s required steps. The supplied report also stated that management expects the acquisition to increase adjusted earnings per share in the first full year following completion.

Separately, Amazon announced developments involving its artificial intelligence hardware business. Its TorchNeuron tool is designed to help developers run PyTorch models on the company’s Trainium chips with fewer changes when shifting workloads between hardware platforms. The development relates to Amazon Web Services (AWS) and its efforts to support AI workloads.

Amazon also expanded its data-centre-related commercial arrangement with 3M. The agreement included a warrant valued at approximately $521.4 million, linked to a broader arrangement involving up to $6 billion in product purchases. These developments formed part of the company-specific news being assessed during Tuesday’s market session.

The opening session on 20 October 2026 recorded a 0.86% decline in the Nasdaq Composite, a 0.13% fall in the S&P 500 and a 0.57% gain in the Dow Jones. Brent crude reached $111.75 per barrel, while US housing starts declined 5.2% in September. Corporate earnings, energy-market developments, Treasury yields and housing data remained key reported developments during the session.