On October 21, 2026, the Dow Jones Industrial Average fell by 515 points, or 1%, closing below 34,000, as sell-offs in technology stocks spread to other sectors. The S&P 500 decreased by 0.2%, while the Nasdaq saw a slight gain of 0.2%. The sell-off was exacerbated by U.S. oil prices climbing above $100 a barrel, heightening concerns regarding a potential escalation in the U.S.-Iran conflict.

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Defensive sectors such as consumer staples, utilities, and healthcare also faced downward pressure. American Express dropped over 3% after announcing a cut of about 5% in its global workforce to adapt to emerging AI needs. Caterpillar and Goldman Sachs saw declines of 2% and 1%, respectively.

In the preceding session, many technology stocks had already experienced a downturn, as investors assessed the implications of increased corporate borrowing and rising interest rates on the sector. However, some chip stocks, including Micron Technology and Advanced Micro Devices, reported gains of 3% and 2% respectively on Friday. Portfolio manager Jed Ellerbroek noted the shift in investor sentiment, saying there has been a sprint away from tech stocks toward safer investments.

The 10-year Treasury yield remained stable at approximately 4.994%. This yield had recently dipped below 5% for the first time in a month due to investor caution surrounding the significant borrowing for AI data center projects. Oil prices rose sharply, with West Texas Intermediate futures climbing 2.7% to $102.18 per barrel and Brent crude increasing by 2.6% to $116.19.

The market turmoil coincides with reports suggesting renewed military plans by the U.S. and Israel against Iran, with Iran vowing to retaliate. For the week, the S&P 500 is facing a marginal loss, down less than 0.1%, while the Nasdaq fell by 0.3%, and the Dow is projected to end with a slight gain of 0.7%.

In other updates, Morgan Stanley downgraded its price target on CoreWeave from $99 to $70, attributing the change to financial pressures amidst concerns about the company's AI-related debt. Meanwhile, consumer sentiment remained flat in October, with a University of Michigan survey indicating minimal change from low levels, reflecting ongoing inflation concerns.