Wall Street ends down sharply as worries about AI trade and high oil prices weigh
SPY•The S&P 500 fell 1.10%, the Nasdaq dropped 2.15% and the Dow declined 0.36% on Friday as AI-related stocks came under pressure and oil prices rose more than 3%.
1. Stocks fall on AI concerns
Wall Street ended sharply lower Friday, with AI-related technology stocks including CoreWeave and Broadcom under pressure. The Nasdaq fell 2.15% to 26,137.85, the S&P 500 lost 1.10% to 7,658.62 and the Dow fell 0.36% to 51,990.05. CoreWeave bonds sold off during the week, pushing yields above 15%, while the PHLX chip index fell for an eighth straight day.
2. Oil and rate worries
Oil prices rose more than 3% on Middle East supply concerns, adding to investor caution. Hotter-than-expected consumer and producer inflation reports also showed price pressures extending beyond energy commodities. Markets increasingly expect the Federal Reserve to hold rates this month, while Barclays expects quarter-point hikes in December and January. Current and prospective Anthropic investors are reportedly weighing a lower valuation for the company's upcoming IPO.
3. Tesla slips after reveal
Tesla shares fell after the electric-vehicle maker unveiled a redesigned Roadster developed in collaboration with SpaceX and featuring rocket-style thrusters. Third-quarter earnings reports from Tesla, Meta Platforms and Procter & Gamble are due next week; analysts expect quarterly earnings to rise more than 30%, driven by AI-related megacaps.
