US stocks fell on Thursday as investors weighed earnings from Tesla and Meta Platforms against concerns about the cost of the artificial-intelligence buildout and a surge in oil prices.
The Nasdaq Composite dropped 1.4%, while the S&P 500 lost 0.7%. The Dow Jones Industrial Average slipped 0.2%, holding up better as technology and semiconductor shares came under pressure.
Meta shares fell about 5% despite the Facebook and Instagram parent reporting better-than-expected revenue and offering an upbeat outlook. Investors remained concerned about how much the company plans to spend on AI infrastructure. Advanced Micro Devices declined more than 5%, while Micron Technology and Nvidia also fell.
Tesla shares swung after the electric-vehicle maker reported better-than-expected earnings. Investors weighed a lower capital expenditure outlook for 2026 against plans to increase spending in 2027 and 2028 on projects including its Optimus humanoid robot, Cybercab robotaxi and Terafab chip initiative.
Oil prices added to the pressure on markets. Brent crude futures rose about 3% to above $112.45 a barrel, while US West Texas Intermediate futures gained 2% to above $99.95. Brent reached a five-month high amid heightened geopolitical tensions, raising concerns about the inflationary impact of more expensive energy.
US government bond yields fell as investors sought safer assets. The 10-year Treasury yield declined more than nine basis points to 5.048%, while the two-year yield fell by a similar amount to 4.733%.
Not all companies traded lower. Blackstone shares rose about 4% after the alternative asset manager gave an upbeat outlook for investment exits and fee growth. Chief Financial Officer Michael Chae said performance-fee realisations from investments expected to close in the fourth quarter would exceed total net realisations in the third quarter. He also reiterated expectations for double-digit growth in base management fees in 2027.
Lockheed Martin shares climbed more than 6% after the defence contractor reported better-than-expected third-quarter results and raised its full-year 2026 outlook, citing strong demand for fighter jets and missile defence systems. It now expects annual sales of $80 billion to $82 billion, up from its previous forecast of $79.75 billion to $81.75 billion.
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