Wall Street tumbled on Friday, with CoreWeave, Broadcom and other AI-related technology stocks under renewed pressure, while a jump in oil prices spooked traders heading into the weekend.
The Nasdaq was on track for a loss of over 4% for the week, hammered by concerns that debt-laden AI infrastructure companies may not turn profits in time to repay debts, particularly with borrowing costs expected to rise.
Nvidia-backed CoreWeave slumped 12%, bringing its loss over the past five sessions to about 25%. The data center operator's bonds also sold off sharply this week, pushing yields above 15%.
Broadcom fell 3.6%, and the PHLX chip index sank 2.5%, on track for its eighth straight day of declines.
Investors on Friday were also watching oil prices jump more than 3% due to Middle East supply worries.