Stock Market Today: S&P 500 and Nasdaq Fall as Meta, Tesla Earnings Disappoint; Oil Surges Above $111 on Iran Fears

New York, Oct. 22, 2026 — U.S. stocks closed lower on Thursday, with the S&P 500 and Nasdaq Composite retreating as investors digested mixed earnings from Meta Platforms and Tesla, while a renewed surge in crude oil above $111 a barrel reignited inflation concerns and pressured risk assets.

The S&P 500 fell 1.32% to close at 7,655.34, while the Nasdaq 100 dropped 2.40% . The Dow Jones Industrial Average also moved lower, though it outperformed the broader market as investors rotated into defensive names.

Why Did the Stock Market Fall Today?

1. Meta’s earnings miss spooked investors. Meta reported third-quarter revenue of **$64.60 billion**, beating expectations of $63.37 billion. However, earnings per share came in at $3.83**, well below the **$6.54 consensus estimate. The company noted that EPS would have been $7.40** without a **$9.9 billion multi-state legal settlement over child-addiction issues . The headline miss overshadowed the revenue beat and raised questions about the company’s margin trajectory.

2. Tesla beat estimates, but broader tech sentiment remained fragile. Tesla reported third-quarter revenue of $28.05 billion**, topping the **$27.9 billion consensus, with adjusted EPS of 48 cents versus expectations of 43 cents . Despite the beat, the result was not enough to offset the broader selloff in growth names.

3. Oil surged above $111 on Iran tensions.** **Brent crude** jumped **2.7% to $111 per barrel as investors assessed the potential for resumed military strikes on Iran. President Trump had previously said he would hold off on attacking Iran until after the November 3 midterm elections, but renewed military action before then remains a risk as regional tensions escalate . The energy spike added to fears that inflation could remain elevated, complicating the Fed’s policy path.

Which Stocks and Sectors Moved?

Procter & Gamble moved higher ahead of the open after its sales and profits beat Wall Street expectations. Organic revenue rose 4% in the first quarter ended September, the fastest growth in three years, driven mostly by improved sales volumes .

Spotify rallied after reporting paying subscribers increased 2% to 306 million in the third quarter, slightly topping estimates of 305.1 million. Monthly active users grew 1% to 788 million .

Lam Research fell in premarket trading after the semiconductor capital equipment company provided adjusted second-quarter earnings guidance that was slightly weaker than expected at the midpoint. The guidance weighed on the broader chip-equipment complex, overshadowing an earnings beat from Texas Instruments .

What Are Treasury Yields Saying?

The 10-year Treasury yield fell sharply as a flight to safety boosted demand for government bonds. The yield declined 0.193 percentage point to 4.952%, marking its largest one-day decline since March 10, 2023 . Intraday data showed the yield plunging 11.30 basis points to 5.033% as of late morning in New York .

The retreat in yields came despite the oil spike, reflecting the market’s broader risk-off tone as equity volatility returned.

What’s Next for Investors?

Attention remains on the Federal Reserve’s October 28 meeting. Markets have largely priced out a rate hike at this month’s gathering, though a December increase remains a live possibility depending on incoming inflation and labor data.

Investors will also continue monitoring Iran-related developments and their impact on energy prices, as well as the ongoing third-quarter earnings season for signals on whether corporate profits can sustain the market’s elevated valuations.

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Key Takeaways (Quick Summary)

• S&P 500 fell 1.32% and Nasdaq 100 dropped 2.40% as Meta and Tesla earnings failed to inspire confidence
• **Meta EPS of $3.83** missed the $6.54 estimate due to a $9.9 billion legal settlement; revenue beat
• Tesla beat on both revenue and EPS, but couldn’t offset the broader tech selloff
• Brent crude surged 2.7% to $111 on renewed Iran strike fears, reigniting inflation concerns
• 10-year Treasury yield plunged to 4.952%, its largest one-day decline since March 2023, as investors sought safety
• P&G rose on a 4% organic revenue beat; Spotify gained on subscriber growth; Lam Research fell on weak guidance