Dow Drops 652 Points as Oil Surges Ahead of Fed Meeting; Nasdaq Slips 0.2%

U.S. stocks ended lower on Friday, October 23, 2026, as a jump in oil prices revived inflation worries. The Dow Jones Industrial Average fell 652.82 points, or 1.2%, to close at 52,215.16, the S&P 500 lost 0.5% to 7,623.68, and the Nasdaq Composite slipped 0.2% to 25,955.34. Earlier headlines cited a drop of about 500 to 600 points, but those were intraday readings; the close was the 652-point figure. The S&P 500 posted its second straight weekly loss, while the Dow held on for a weekly gain.

Oil was the driver. Brent crude settled at $116.72, up 3.1% on the day, after starting October below $97, and U.S. crude (WTI) rose 3.8% to $103.27. Outlets differ on how unusual the level is: AP describes Brent as the highest since June 2022, while other reports put it at the highest since April. Energy shares gained, with CVX up 2.9% and COP up 3.6%. Decliners included American Express (down 3.7%), Caterpillar (down 2.4%), and JPM and C (each down 1.5%).

Treasury yields rose as well, with the 10-year near 5.0%, up from 4.96% on Thursday. With U.S. inflation still above 3%, Wall Street expects the Federal Reserve to hold rates at its meeting that concludes next Wednesday, but markets are leaning toward another hike in December. The Nasdaq was a smaller part of the story than the headline suggests: AI-linked names such as MU, AMD and INTC rose 1.7% to 2.5%.

Investors may watch whether crude holds near these levels, the September PCE inflation reading (expected at a 3.7% annual rate), and the Fed's guidance next week.