Tech Selloff Weighs on Wall Street as Small Caps Hold Up
The Dow finished slightly higher, while the S&P 500 and Nasdaq fell sharply, with the Nasdaq down 2.60% and the S&P 500 down 1.21%; the Russell 2000 gained 0.11%. Tech stocks led losses as the Nasdaq 100 dropped more than 3%, while falling Treasury yields helped small caps outperform and investors moved toward safer assets. Ahead of next week's Fed decision, Middle East tensions lifted oil to a five-month high and the PHLX Semiconductor Index fell more than 7%, though it remained above its 200-day moving average.
On Oct. 22, 2026, the Dow edged up 17.51 points to 52,866, while the S&P 500 fell 93.77 to 7,663 and the Nasdaq lost 694 points to 26,008. The Russell 2000 added 3.02 points to 2,784, as sharply lower Treasury yields supported rate-sensitive housing, mortgage, dividend and staples shares.
The PHLX Semiconductor Index dropped more than 7% to 10,690, still just above its 200-day average of 10,677. Oil reached a five-month high amid Middle East concerns, the VIX touched 20.30, and investors awaited next week’s Fed decision and midterm elections two weeks away.
The tech-led pullback could affect households with retirement and brokerage accounts, especially those concentrated in growth stocks, while lower Treasury yields may influence mortgage and savings rates. Small-cap resilience and staples gains may soften the blow for some portfolios, but oil near a five-month high could add pressure to fuel and transport costs. Investors may also stay cautious before the Fed decision and midterms.