Wall Street Ends Its Worst Week Since June as AI Debt Fears Hit Tech Stocks
The Nasdaq fell 2.1% on Friday. CoreWeave lost about 24% for the week, and hot inflation readings raised the odds of a Fed rate hike.
By Watchman Report staff ·
The tech-heavy Nasdaq Composite fell 573 points, or 2.1%, to 26,140 on Friday, closing out its worst week since June, CBS News reported. The S&P 500 fell 1.1% and the Dow Jones Industrial Average slipped 0.3%, or about 175 points. Investing.com reported that the Nasdaq lost 4.5% for the week.
Investors have grown worried about the heavy borrowing behind artificial intelligence and the thousands of data centers being built to power it. So-called neocloud companies that finance much of their spending with debt and new stock were hit hardest: CoreWeave fell nearly 12% Friday and about 24% for the week. Micron fell 5.6%, AMD 6%, Broadcom 4.5% and Intel 5.8%. Market analyst Adam Crisafulli also pointed to concern about whether Anthropic, soon to go public, can keep its revenue momentum; Reuters reported that its investors are considering a $1.5 trillion valuation, down from a $2 trillion target.
Fresh signs of rising inflation added to the pressure. The 10-year Treasury yield held at 5.1%, and the odds of a Federal Reserve rate hike at its December meeting rose to 74.3% from 50.2% a month ago, according to CME FedWatch. The Fed raised rates in September to a range of 3.75% to 4%. Fed Chairman Kevin Warsh gave no hints about policy at a meeting of financial leaders in Bangkok on Friday.
Everything above this line is reported fact, attributed to the sources listed. The Scripture Connection is our interpretation, offered by Christians who read the whole Bible, Old and New Testament, with an Israelite-rooted understanding.
