Wall Street ends sharply lower as AI trade worries weigh
Tech stocks were under renewed pressure, hammered by concerns that debt-laden AI infrastructure companies may not turn profits in time to repay debts.
Wall Street experienced a sharp decline on Friday, with AI-related technology stocks facing renewed pressure and oil prices surging, causing traders to become cautious going into the weekend. The PHLX chip index saw its eighth consecutive day of losses, marking the longest losing streak since 2008. CoreWeave, a company backed by Nvidia, plummeted 12%, accumulating a five-session loss of approximately 25%.
Nvidia's stock did not fare well either, with its share price falling by 3.1% after unveiling a redesigned Roadster equipped with rocket-style thrusters, developed in collaboration with SpaceX. Investors were also concerned about the potential impact of higher oil prices on the P/E multiples of stocks, leading to a cautious approach into the weekend.
The S&P 500 closed the session at 7,659.44 points, down 1.09%, while the Nasdaq dropped 2.15% to 26,140.03 points. The Dow Jones Industrial Average ended the day with a 0.34% decline to 52,002.41 points. Despite a heavy trading volume of 18.6 billion shares, the S&P 500's median component only gained around 6% year-to-date, while 185 stocks in the index lost value during the quarter.
Written by urgent.news from Free Malaysia Today's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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