Tech Stocks Slump as Nasdaq Heads for Weekly Loss

what happened

Technology stocks are sliding on Friday, with chip makers and AI-related shares facing fresh pressure. The Nasdaq Composite is down about 2% in afternoon trading, and for the week the index could fall by more than 4%, its sharpest drop since June. The S&P 500 is down roughly 1% and the Dow Jones is lower by 0.5%, though the Dow is still up for the week.

CoreWeave, a compute provider backed by Nvidia, has taken the heaviest hit. Investors worry that higher borrowing costs will squeeze the most leveraged players in the data-center buildout. Markets had steadied earlier as traders reduced bets on a Fed rate increase this month after remarks from Chairman Kevin Warsh, who did little to push back on the view that the central bank is in no hurry to hike. The dollar weakened along with rate-hike expectations, and 10-year Treasury yields are nearing their best week since February. Brent crude rose about 3% to $109 a barrel, according to WSJ.

why it matters

Expectations of Fed tightening and rising Treasury yields weigh on high-risk, debt-heavy technology assets. Growth stocks remain sensitive to rates, so the path of yields is a key driver for the market.

market impact

Growth and AI stocks: rising yields and rate expectations pressure valuations

tags

instruments