The Nasdaq Composite tumbled 573 points, or 2.1%, on Friday to close at 26,140, capping its worst week since June.
By the numbers: The broader S&P 500 fell 1.1% on Friday and the Dow Industrial Average slipped 0.3%, so the damage concentrated in technology.
- CoreWeave slid nearly 12% on Friday and roughly 24% across the week. Micron fell 5.6%, AMD 6%, Intel 5.8% and Broadcom 4.5%.
Between the lines: Neocloud companies like CoreWeave fund most of their capital spending through debt and equity issuance rather than cash flow, Vital Knowledge head Adam Crisafulli told CBS News.
Zoom in: Investors also weighed whether Anthropic can hold its revenue momentum ahead of going public. Backers are now considering a $1.5 trillion valuation, down from an original $2 trillion target, Reuters reported Thursday.
The big picture: Fresh inflation readings this week moved further above the Federal Reserve 2% target, and the 10-year Treasury yield held at 5.1%, the benchmark behind mortgages and credit cards.
- Odds of a rate hike at the December Fed meeting have jumped to 74.3% from 50.2% a month ago, according to CME FedWatch.
Yes, but: Most traders still expect the Fed to hold short-term rates at its October 28 to 29 meeting. The federal funds rate sits between 3.75% and 4% after the September hike.
Why it matters: Retirement accounts track these indexes, and a week like this one prices in the risk that the money borrowed to build AI data centres gets harder to repay while rates stay high.
