Wall Street tumbles as worries about AI trade and high oil prices weigh
SPY•U.S. stocks fell Friday, with the S&P 500 down 1.22% and the Nasdaq down 2.19%, as AI financing concerns and a more than 3% jump in oil prices weighed on shares. The S&P 500 was set for its steepest weekly loss since January.
1. Stocks fall on AI concerns
Wall Street fell Friday as CoreWeave, Broadcom and other AI-related stocks came under pressure, while oil prices rose more than 3% on Middle East supply worries. The Nasdaq was on track for a weekly loss of more than 4%, with investors concerned that debt-laden AI infrastructure companies may not generate profits in time to repay debt as borrowing costs are expected to rise.
2. Weekly losses deepen
CoreWeave fell 12%, bringing its five-session loss to about 25%, and its bonds sold off sharply, pushing yields above 15%. Broadcom dropped 3.6%, while the S&P 500 fell 1.22% to 7,649.71, the Nasdaq declined 2.19% to 26,128.13 and the Dow lost 0.55% to 51,891.77. Investors also weighed inflation data and expectations that the Federal Reserve will leave interest rates unchanged this month; Barclays now expects quarter-point hikes in December and January.
