US equities extended their declines as concerns over an escalating conflict in the Middle East pushed crude oil futures higher, and with less than two weeks to go before the midterm elections, rising oil prices further fueled inflation worries.

At the same time, Meta shares tumbled as investors scrutinized the company and the latest batch of technology earnings for evidence that massive AI spending is paying off. The selloff was concentrated in large-cap technology stocks.

The Nasdaq 100 fell as much as 3.1%. The Philadelphia Semiconductor Index plunged as much as 6.4%, its biggest intraday drop since July. The S&P 500 declined 1.4%, while the equal-weighted S&P 500, a measure of market breadth, rose 0.2%.

"We've seen several rounds of sector rotation this year, and today was especially intense," said Michael Bailey, director of research at FBB Capital Partners. "Meta's earnings emboldened the bears, triggering a rush among investors to dump recent AI winners and pile into 'boring is beautiful' sectors like healthcare, consumer staples and utilities."

Meta fell as much as 7.6%, its biggest intraday decline since July, even though the company's results beat expectations and it raised its capital spending outlook. Meta shares initially rose after the earnings release, but as spending plans reignited concerns, a gauge of Meta's credit risk climbed to a record high on Thursday.

Tesla shares fell 2.2% after the electric vehicle maker scaled back its spending plans, with its elevated operating expenses highlighting the costly push into AI, robotics and autonomous driving.

Disappointing earnings reports from Tesla, Lam Research and IBM dragged down chipmakers and other technology stocks, weighed on growth shares and also pushed crypto-related stocks lower.

Blackstone was a bright spot, with its shares rising 6.47%. President Jon Gray said investors should not worry about the AI boom turning into a bubble, because demand is growing at a "parabolic" rate.

Mortgage finance giants Fannie Mae and Freddie Mac advanced after investor Bill Ackman raised the issue of ending government conservatorship for the two companies.