The Globe and Mail reports in its Friday, Oct. 23, edition that stocks fell sharply on Thursday, with the Nasdaq experiencing its largest drop since June, following high-profile earnings that raised concerns about artificial intelligence spending. A Reuters dispatch to The Globe reports that investors rushed to the bond market, causing significant declines in U.S. Treasury yields. The S&P 500 closed in negative territory, while the Nasdaq plummeted 2.6 per cent due to disappointing AI-related earnings in the microchip sector. The blue-chip Dow eked out a nominal gain minutes before the closing bell. Meta exceeded analyst expectations, but its stock fell 7 per cent after reporting its first cash outflow in over a decade due to AI-related spending. Meta plans a two-for-one split to issue nonvoting shares to raise capital for this emerging technology. Tesla shares fell 3.1 per cent even though it unexpectedly posted positive free cash flow in the quarter and cut its 2026 capital spending plans. The Philadelphia SE Semiconductor Index, which has driven much of the current bull market's gains, plunged 6.7 per cent, its biggest daily percentage drop since June 23.