Wall Street opens muted as AI debt worries weigh on tech; Tesla rises

what happened

US index futures pointed to a quiet start on Friday as technology shares kept sliding, with investors uneasy that strain is showing up in the artificial intelligence trade. Tesla gained roughly 3.3% before the bell after showing a reworked Roadster with rocket-style thrusters, built jointly with SpaceX.

CoreWeave, backed by Nvidia, dropped 5.5% after bouncing on Thursday. The main worry is the data center operator's borrowing: its bonds sold off hard this week, sending yields above 15%. Nebius Group and Iren each lost more than 3%, Micron fell 2% and Intel 1.6%. According to TradingView, citing Reuters, some current Anthropic backers and prospective buyers of its planned IPO are weighing a lower valuation as AI financing costs climb.

Hotter-than-expected inflation figures and oil holding above $100 a barrel are adding pressure on interest rates. Federal Reserve Chair Kevin Warsh said the US economy remained resilient and was gaining from an AI-driven investment boom, while acknowledging that heavier spending was lifting prices. Markets increasingly expect the Fed to leave rates unchanged this month. Travelers dropped 3.2% after third-quarter results, Varonis climbed 2.8% on Thoma Bravo's $6.3 billion all-cash deal for Proofpoint to buy it, and Netflix shares fell 3.6% after it named Peter Rice chief content officer. At the open, the Dow Jones rose 0.25% to 52,308.28, the S&P 500 edged up 0.02% to 7,745.32, and the Nasdaq Composite lost 0.22% to 26,652.985.

why it matters

The AI sell-off comes down to whether data center operators can turn profitable and repay debt before borrowing costs rise further. For indexes, that means AI names are no longer an automatic growth engine, while expensive oil and expectations of a Fed pause limit appetite for risk. The S&P 500 and Nasdaq were on course for weekly losses, while the Dow was set for a weekly gain.

market impact

Tech and AI stocks: pressure from debt risks; Tesla and the Dow support the indexes

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