Nasdaq Drops 2.1% as AI Scrutiny Sparks Tech Sell-Off, Capping Worst Week Since June
Updated
Updated · Yahoo Finance · Oct 16
Nasdaq Drops 2.1% as AI Scrutiny Sparks Tech Sell-Off, Capping Worst Week Since June
3 articles · Updated · Yahoo Finance · Oct 16
Summary
The Nasdaq slid 2.1% on Friday, dragging the S&P 500 down 1.1% and the Dow 0.4% as software and semiconductor stocks led another tech retreat.
AI-related pressure stayed at the center of the sell-off, with chip stocks extending losses and Nvidia-backed CoreWeave falling again on worries about its debt-heavy balance sheet.
For the week, the Nasdaq lost 4.5%—snapping a monthlong winning streak and posting its worst week since late June—while the S&P 500 fell about 1.4%; the Dow still rose 1.5% as money rotated out of tech.
Brent crude briefly touched $110 a barrel as Iran escalated attacks in the Strait of Hormuz, adding to volatility and another inflation risk as the 10-year Treasury yield hovered near 5.1%.
The pullback sets up a key test for earnings season next week, with Tesla, Netflix and Meta due to report as investors gauge whether pressure on AI leaders spreads further across tech.