S&P 500, Nasdaq set for steep weekly losses as AI jitters rattle investors
SPY•The S&P 500 and Nasdaq were set for their steepest weekly losses since June as technology shares fell on concerns about AI valuations, data-center debt and competition from China. At 12:19 p.m. ET, the S&P 500 was down 0.56%, the Nasdaq 1.3% and the Dow 0.03%.
1. AI shares lead declines
The S&P 500 information technology index fell 1.5%, while the broader semiconductor index dropped 1.8%, putting it on course for its steepest eight-session decline since April 2025. CoreWeave slid 10.3% as debt concerns lingered, with its bonds’ yields rising above 15% this week. Meta fell 2.3% and Microsoft lost 1.8%.
2. Investors shift toward value
Investors worried that data-center operators may not become profitable in time to repay debt, particularly as borrowing costs are expected to rise, while concerns about competition from China also weighed on sentiment. Dennis Dick of Triple D Trading said investors concerned about AI valuations were moving toward lower-multiple stocks with stable cash flows. The S&P 500 was set for its steepest weekly loss since early June, and the Nasdaq its sharpest weekly decline since June 22.
3. Rates and other movers
Hotter-than-expected consumer and producer inflation reports added to price-pressure concerns. Markets increasingly expect the Federal Reserve to leave rates unchanged this month, while Barclays now expects 25-basis-point hikes in December and January. Energy shares rose 1.5% and financials gained 1%; Goldman Sachs and JPMorgan Chase helped lift the Dow, which was set for a weekly gain.
