US stocks: Wall Street ends down sharply; worries about AI trade, high oil prices weigh
Investors are also watching oil prices jump more than 3% due to Middle East supply worries
Wall Street witnessed a sharp decline on Friday, Oct 16, as concerns surrounding artificial intelligence and high oil prices weighed on investors. CoreWeave, Broadcom, and other AI-related technology stocks faced renewed pressure, while a surge in oil prices unsettled traders entering the weekend. The Nasdaq extended its losses from the previous week, hindered by worries that debt-ridden AI infrastructure companies might struggle to repay debts, especially with rising borrowing costs.
Nvidia-backed CoreWeave experienced a significant drop, contributing to recent losses, with its bonds selling off sharply this week and yields surpassing 15 per cent. Broadcom and the PHLX chip index both fell for an eighth consecutive day. Market analysts noted a growing fear in the market due to high oil prices, which tend to negatively impact the price/earnings multiple of stocks, prompting investors to exercise caution rather than take additional risks.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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- US stocks close sharply lower, worries about AI trade and high oil prices weigh straitstimes.com
- US stocks: US market ends down sharply; worries about AI trade and high oil prices weigh economictimes.indiatimes.com
