The Nasdaq composite fell 2.1% on Friday, capping a 4.5% weekly decline that marked the worst performance for the tech-heavy benchmark since June, as artificial intelligence-related shares faced intense selling pressure. The drop contrasted with the Dow Jones Industrial Average, which dipped 0.3% on the day but finished the week with a slight gain.
The Bottom Line
- The Nasdaq index dropped 4.5% over the week, driven by a sharp sell-off in AI infrastructure and compute providers.
- Benchmark 10-year Treasury yields closed the week at 5.097%, marking their best week since February.
- Brent crude climbed 3.7% on Friday to settle at $109.86 a barrel, reaching its highest level since May.
AI Infrastructure Under Pressure as Borrowing Costs Rise
The tech sector’s retreat hit AI-related equities hardest, with compute provider CoreWeave experiencing sharp valuation drops on Friday. As an Nvidia-backed compute provider, the company sits at the epicenter of a broader market reassessment. Investors are re-evaluating capital-intensive business models as higher interest rates increase the cost of debt for data-center expansion.
This squeeze on highly leveraged firms spilled over into the broader technology index.
| Market Index | Friday Change | Weekly Performance |
|---|---|---|
| Nasdaq Composite | -2.1% | -4.5% |
| S&P 500 | -1.1% | Not Reported |
| Dow Jones Industrial Average | -0.3% | Positive |
Shifting Rate Expectations and Treasury Yields
Before the late-week tech slide, equity markets had found some stability. Investors pared back expectations for an imminent Federal Reserve interest rate hike this month following comments made by Kevin Warsh at a conference in Bangkok.
The recalibration of monetary policy expectations weighed on the U.S. dollar while driving strong demand for government debt. Benchmark 10-year Treasurys wrapped up their best week since February, with yields settling at 5.097% at Friday’s close.
Energy Markets Surge as Brent Reaches Multi-Month Highs
While equities stumbled, commodity markets saw distinct upward momentum. Brent crude surged 3.7% toward the end of the trading session to finish at $109.86 a barrel.
Disclaimer: The information provided in this article is for educational and informational purposes only and does not constitute financial advice.
