Wall Street falls as AI stocks slide again; Nasdaq posts worst week since June

US stocks ended sharply lower on Friday, 16 October, as AI-related technology shares came under renewed pressure and a jump in oil prices unsettled traders before the weekend, Reuters reported.

The close

• According to preliminary data cited by Reuters, the S&P 500 fell 1.10% to 7,658.62, the Nasdaq Composite lost 2.15% to 26,137.85, and the Dow Jones Industrial Average slipped 0.36% to 51,990.05.
• The Nasdaq fell about 4.5% over the week, its worst week since June, the WSJ and AP reported. The Dow still finished the week higher.

What drove the selloff

• Investors worried that debt-heavy AI infrastructure companies may not turn profits in time to repay their borrowing, especially as interest rates are expected to rise.
• Nvidia-backed data-centre operator CoreWeave fell about 12% on the day and more than 23% for the week, according to the WSJ; its bonds sold off this week, pushing yields above 15% (Reuters).
• Broadcom also fell, and the PHLX semiconductor index declined for an eighth straight session.
• Oil rose more than 3% on Middle East supply worries. “There is some fear in the market,” Rob Haworth of U.S. Bank Wealth Management told Reuters.