Nasdaq Falls 2% Friday as AI Sell-Off and Rising Oil Prices Weigh on Markets
U.S. stock markets closed lower on October 16, with the Nasdaq Composite falling by 2.14%, marking its worst week since June due to a sell-off in tech and artificial intelligence-related stocks. The S&P 500 dropped 1.09% for the day and more than 2% over the week, while the Dow Jones Industrial Average fell slightly but managed a modest weekly gain of 0.7%. Chipmakers like Micron Technology and AMD were among the hardest hit as concerns about competition from China intensified. Investors are also worried about rising debt levels in AI-focused companies such as CoreWeave, which has seen its total debt exceed $51 billion. Energy stocks provided some relief with gains driven by higher oil prices amid geopolitical tensions between the U.S., Iran, and Russia-Ukraine. West Texas Intermediate crude rose 3.5%, while Brent crude increased nearly 4%. Inflation data also remained a concern as wholesale inflation posted its largest gain since 2022. Federal Reserve Chair Kevin Warsh did not signal any rate hikes at an IMF event in Bangkok, leading traders to expect the Fed will keep rates unchanged during its October meeting. The Cboe Volatility Index (VIX) climbed above 22 for the first time in four months, signaling increased market anxiety.
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Topics: AI stocks Dow Jones Industrial Average Nasdaq Composite oil prices S&P 500 semiconductors
Part of the story Nasdaq Rises Over 1% as AI Sector Regains Momentum (3 articles)