Global Stocks Slide as Brent Oil Reaches 112 Dollars

Global financial markets weakened on October 22, 2026, as Brent crude oil climbed to $112 per barrel amid escalating Middle East tensions and concerns about energy supplies. According to UA.News and a market briefing published by Christophe Barraud, stock futures in the United States declined alongside major European and Asian indexes, while Tesla shares fell after the electric vehicle maker reduced its capital expenditure forecast.

S&P 500 futures dropped 1.02% before trading opened in New York, while Nasdaq futures fell 1.82%, according to UA.News. In Europe, the Stoxx 600 declined 0.92% at the start of trading, and Britain's FTSE 100 was down 0.46% by midday.

Asian markets also recorded broad losses. South Korea's KOSPI fell 3.52%, Japan's Nikkei 225 dropped 2.65%, India's Nifty 50 declined 0.82%, and China's CSI 300 lost 1.84%. The Chinese index had fallen 15% since the beginning of 2026, according to the report.

Market sentiment deteriorated as reports pointed to renewed security risks in the Middle East. Fortune, as cited by UA.News, reported that Iran-backed Houthis launched additional drone strikes targeting Saudi airports and Saudi Aramco's Shaybah oil field. The United States also ordered some embassy employees to leave Riyadh, while attacks on vessels attempting to navigate the Strait of Hormuz continued, according to the report.

Rising oil prices added to concerns about potential disruptions to energy transportation. The Strait of Hormuz is a key route for global oil shipments, making developments affecting maritime traffic relevant to energy markets.

Tesla shares dropped 5.35% in after-hours trading following the company's third-quarter earnings call. The company reduced its projected capital expenditure for 2026 from $25 billion to $20 billion, according to UA.News.

Despite the spending reduction, Tesla reported quarterly revenue of $28.05 billion, below the $28.13 billion estimate cited in Christophe Barraud's market briefing. Adjusted earnings per share reached 48 cents, exceeding the 44-cent estimate, while operating income totaled $718 million against an expected $599.3 million.

Automotive revenue reached $20.56 billion, above the $19.83 billion estimate, while services and other revenue totaled $4.61 billion, compared with the $4.30 billion estimate. The market briefing attributed the capital spending decision to Tesla's latest earnings disclosures.

Jim Reid of Deutsche Bank said the revised investment forecast raised questions about the pace of Tesla's transition toward artificial intelligence and robotics. The report also noted that the company's revenue and profit were close to expectations, although the spending adjustment drew investor attention.

Elsewhere in financial markets, the yield on 10-year French government bonds reached 5.1%, its highest level since 2002, according to UA.News. Bitcoin also declined to $81,922 as investors faced pressure across several asset classes.

Corporate spending commitments and concentration in major US stocks also featured in the October 22 market briefing. The Kobeissi Letter reported that the 15 largest S&P 500 companies accounted for a record 46.7% of the index's market value, compared with 27.2% during the 2000 dot-com bubble.

The briefing also reported that Meta added $76 billion in off-balance-sheet commitments during the third quarter, mostly through $68 billion in leases, bringing its total off-balance-sheet commitments to $747 billion. Total off-balance-sheet debt among major hyperscalers stood at $3.6 trillion as of October 21, 2026, according to the cited market data.