US stocks posted weekly losses after a sharp tech-led selloff, with the Nasdaq closing nearly 12% below its October 6 record. Investors face Tuesday’s October CPI report and earnings from CoreWeave, Applied Materials and Cisco next week.
US stocks swung sharply after Tuesday’s midterm elections, as concerns that the results could slow the AI data-center buildout unsettled investors. The Nasdaq Composite closed Thursday nearly 12% below its October 6 all-time high, while the S&P 500 technology sector fell 7.3% and the Philadelphia Semiconductor index dropped more than 12%, both posting their biggest one-day declines in more than six years. Tech stocks rebounded modestly on Friday, but major indexes still ended the week lower.
The government releases October’s consumer price index on Tuesday. Investors are watching the data for clues to the Federal Reserve’s rate path; fed funds futures were indicating about an 80% chance of a rate hike at the central bank’s December 8-9 meeting after Friday’s jobs report. Investors were also expecting about two more standard 25-basis-point increases during this cycle.
CoreWeave, Applied Materials and Cisco Systems are among the technology companies scheduled to report earnings next week. CoreWeave is at the center of concerns about financing the AI buildout, and its shares have been pummeled in recent weeks.
