Brent hits $116 and Meta's AI bill rattles tech: Wall Street slips for a second week

For the second week running, Wall Street's big technology names lost ground. This time the trigger was Meta's AI spending bill, which set off a sharp sell-off in chip stocks on Thursday. Oil added to the pressure, with Brent crude settling at its highest level since April.

Yet the picture was not all red. Smaller US companies and the Dow ended the week higher. Here is what happened, and why it matters for India on Monday.

The week in US stocks

• S&P 5007,623.68, down 0.5% for the week and 0.5% on Friday.
• Nasdaq Composite25,955.34, down 0.7% for the week and 0.2% on Friday.
• Dow Jones52,215.16, up 0.4% for the week despite a 1.2% fall on Friday.
• Russell 20002,775.90 (small companies), up 2% for the week.

Even so, all four indexes are up between 8.6% and 11.8% for 2026, the AP's figures show. The Dow's Friday drop was partly about telecoms: AT&T and T-Mobile fell more than 6% after a report that SpaceX wants cell sites for a fourth wireless network, Reuters reported.

Thursday's AI shock

Meta's quarterly results beat expectations, but its shares fell 7%. The company reported its first cash outflow in more than a decade, driven by AI spending, and raised its 2026 capital spending estimate to $135–145 billion, according to Yahoo Finance. Chipmakers took the biggest hit. Intel, AMD, Sandisk and Marvell each fell more than 8%, Reuters reported.

Last week the worry was debt-funded AI spending. This week it spread to the giants themselves. "Investors are starting to realize that there are some holes in the AI story," said Paul Nolte of Murphy & Sylvest. Tech steadied on Friday, but the real test comes next week, when about a third of S&P 500 companies report, including Alphabet, Microsoft and Amazon.

Bonds and the Fed

The 10-year US Treasury yield ended the week at about 4.99%, roughly 11 basis points lower than a week earlier, as nervous investors moved money into safe US government bonds. New to yields? Read why bond prices and yields move in opposite directions.

The Fed announces its next decision on Wednesday, 28 October. Markets widely expect no change. The odds of an October hike fell to about 5%, from 15% earlier in the week, Yahoo Finance reported. Attention is now on whether the Fed hikes in December.

Oil up, gold down

Brent crude settled at $116.72 a barrel on Friday, up 3.14% on the day and about 6% for the week, its highest settlement since 29 April, Benzinga reported. US crude (WTI) settled at $103.38. The cause was escalating Houthi attacks in Saudi Arabia. Saudi Aramco ordered the evacuation of its Dhahran headquarters on Thursday. US energy stocks rose 2.4% on Friday to a record high.

Why it matters for India

• Oil billIndia imports most of its crude. Brent above $116 means a bigger import bill and more pressure on inflation and the current account. See what $100 oil does to India.
• RupeeThe rupee closed at 94.94 per dollar on Friday, little changed for the week. It touched a six-week high of 94.30 on Thursday before oil worries pulled it back, Reuters reported.
• Already-weak marketsThe Sensex fell for a fourth straight day on Friday to 73,123.83. The Nifty closed at 22,600. Smaller stocks were hit harder: the Nifty Smallcap 100 fell 2.94%.
• IT and chipsIndian IT firms earn much of their revenue in the US, so Big Tech results next week could sway them on Dalal Street.
• Foreign moneyA pause by the Fed would ease some pressure on foreign selling. See how a Fed hike pulls money out of India.

What to watch next week

• Jio Platforms listingThe IPO was subscribed 22.19 times by 7 pm on the last day, with institutions bidding 70.55 times their quota. Allotment is due on 26 October and listing is tentatively set for 28 October, HDFC Sky reported. See our Jio IPO explainer.
• The FedIts decision is due on 28 October, which falls late that night in India.
• Big Tech resultsAlphabet, Microsoft and Amazon, and what they say about AI spending.
• The GulfAny new attacks on Saudi energy sites could push oil higher still.

Educational content only, not investment advice.