Meta Meltdown Sends Nasdaq Tumbling as Apple Shines After Hours

It was one of those sessions where good news simply couldn’t outshine the bad.

Even solid figures from Alphabet and a long-awaited Trump–Xi trade handshake failed to keep investors from focusing on rising tech spending, debt-funded AI ambitions, and a still-hawkish Federal Reserve.

Meta’s Spending Shock Sends Tech Lower

The Dow Jones lost 0.2%, the S&P 500 fell 1.0%, and the Nasdaq Composite plunged 1.6%, dragged down mainly by Meta Platforms (META | -11.33%), which posted its steepest one-day drop in three years.

Investors clearly didn’t like what they heard: Meta plans to spend $72 billion on AI infrastructure this year, climbing above $100 billion by 2026. To make matters worse, that growth won’t be financed by its massive cash pile, but with new debt.

The company raised $30 billion via bond issuance on Thursday, a move that set off alarm bells across the market.

Adding insult to injury, Meta also took a $16 billion tax charge under Trump’s newly introduced “Big Beautiful Bill.” It’s safe to say that Zuckerberg’s AI dreams are now colliding head-on with investor reality.

Microsoft and Alphabet: Mixed Fortunes

Microsoft (MSFT | -2.92%) also came under pressure despite strong cloud numbers from Azure. Its market cap dipped below $4 trillion, widening the gap with Nvidia (NVDA | -2.0%), which slipped to $4.93 trillion in valuation after fresh geopolitical uncertainty.

President Donald Trump told reporters he hadn’t discussed the sale of Nvidia’s Blackwell chip to China during his meeting with President Xi Jinping, a notable U-turn after earlier signaling possible approval as part of a broader deal. That comment was enough to spook traders and send Nvidia shares modestly lower.

On a brighter note, Alphabet (GOOG | +2.45%) impressed with a record quarterly revenue surpassing $100 billion, though its initial post-earnings surge cooled as the session wore on.

Trump–Xi Meeting: Warm Words, Few Guarantees

Six years after their last face-to-face, the Trump–Xi summit finally happened and markets had high hopes.

The two leaders announced that China would resume purchases of U.S. soybeans and energy and promised to restart exports of rare earth metals to the United States. In return, the U.S. will lower certain import tariffs.

Sounds good on paper, but analysts remain skeptical. Citi called for “more clarity” on implementation details, while others noted Beijing still appears reluctant to fully reopen rare-earth exports.

In short, it was a symbolic handshake, not yet the structural breakthrough investors were hoping for.

Powell Dampens Rate-Cut Hopes

Fed Chair Jerome Powell added to the cautious tone midweek, stating that a December rate cut is “not guaranteed.” Markets, which had been pricing in a near-certain easing, quickly adjusted expectations.

The euro/dollar pair hovered around 1.1564, while crude oil prices stayed broadly unchanged.

Corporate Carnage Beyond Big Tech

It wasn’t just Silicon Valley feeling the pain.

Chipotle Mexican Grill (CMG | -18.18%) cratered after cutting its annual sales forecast for the third time this year, blaming cost inflation and a budget-conscious U.S. consumer. Growth has ground to a near halt - just +0.3% revenue expansion last quarter - which isn’t exactly what you’d want to see from a stock still trading at over 30× earnings.

Meanwhile, eBay (EBAY | -15.88%) fell sharply on weak guidance, and FMC Corporation (FMC | -46.42%) collapsed after slashing its quarterly dividend by 86%.

On the flip side, Eli Lilly (LLY | +3.81%) gained on strong demand for its weight-loss drugs Mounjaro and Zepbound, lifting its earnings outlook for the year. CEO David Ricks called it “another strong quarter,” and I have to agree, this company continues to fire on all cylinders.

Aftermarket Action: Apple, Gilead, and Coinbase Steal the Spotlight

Once the closing bell rang, a fresh wave of earnings gave investors something to smile about.

Apple (AAPL | +2.34% after-hours) reported a record quarterly revenue of $102.5 billion, up 8% year-over-year, with net income surging to $27.5 billion. iPhone sales rose 6%, and the company expects holiday-quarter revenue to jump 10–12%, comfortably ahead of Wall Street forecasts. It’s clear the iPhone 17 is ringing in a strong upgrade cycle.

Gilead Sciences (GILD | -1.22% after-hours) raised its full-year outlook thanks to stronger HIV drug sales, though investors seemed more focused on the future potential of its new long-acting injection Yeztugo. Despite the solid quarter, shares dipped slightly in late trading.

And in crypto land, Coinbase (COIN | -5.77% at market close, +3.61% after-hours) impressed with an 87% surge in revenue to $1.9 billion and net profit of $437 million, fueled by a rebound in global crypto trading volumes. It’s been a while since “crypto winter” felt this distant.

Looking Ahead

Friday’s session should open with a more positive tone, supported by Apple’s stellar earnings and upbeat guidance. Still, lingering concerns about AI spending, rising corporate debt, and a cautious Fed could cap enthusiasm.

As always, I’ll be watching whether this brief tech relief can turn into something more sustainable or if it’s just another case of, to quote an old saying, “buy the dip, regret the drip.”

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Kristoff - ChartMill

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