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 as concerns surrounding AI stocks weighed heavily on the market. The PHLX chip index suffered its eighth consecutive day of losses, marking the longest losing streak since 2008. AI-related technology stocks, including CoreWeave, Broadcom, and Nvidia-backed CoreWeave, faced renewed pressure, contributing to the overall decline.
CoreWeave's stock plummeted by 12%, bringing its five-day loss to approximately 25%. The company's bonds also saw a sharp sell-off, pushing yields above 15%. Despite the downward trend, some investors expressed caution in the market due to rising oil prices, which can negatively impact the price/earnings multiple of stocks. The S&P 500 and Nasdaq both ended the session with declines, while the Dow Jones Industrial Average dipped slightly.
The week's decline for the S&P 500 and Nasdaq marked the deepest weekly losses since June. Looking ahead, third-quarter earnings season is set to begin, with reports from tech giants such as Tesla, Meta Platforms, and Procter & Gamble expected to provide further insights into the market's performance.
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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