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Nasdaq Falls 2.1% on Chip Selloff, Worst Week Since June
Why did the Nasdaq fall 2.1% on Friday?
Nasdaq Composite (^IXIC) fell 2.1% to 26,140 on Friday, ending its worst week since June, as worries over debt-funded AI spending and oil near $110 drove a chipmaker selloff.
Key numbers
| Nasdaq Composite | 26,140.03-2.1% on day, -4.5% on week |
|---|---|
| S&P 500 | 7,659.44-1.1% on day, -1.9% on week |
| PHLX chip index | 8th straight drop-3.8% on day |
| CoreWeave (CRWV) | -12% on dayabout -25% in five sessions |
| Brent crude | $110 a barrelfirst touch since May |
| 10-year Treasury yield | about 5.1%borrowing costs near highs |
What happened
Nasdaq Composite (^IXIC) fell 2.1% to 26,140 on Friday, ending its worst week since June, as worries over debt-funded AI spending and oil near $110 drove a chipmaker selloff. The S&P 500 fell 1.1% on Friday; for the week the Nasdaq lost 4.5%, the S&P 500 1.9%, and the Dow gained 0.7%. Chipmakers fell for an eighth straight day, the longest slide since 2008, and CoreWeave (CRWV), a data-center firm, dropped 12% on worries it borrowed too much for AI. Oil also jumped over 3% on Middle East supply fears.
Why it matters
The Nasdaq, an index dominated by big technology companies, fell 4.5% this week, which shows up in any fund that tracks tech. Investors fear AI companies borrowed heavily to build data centers and may struggle to repay as borrowing costs rise. Higher oil prices add worry that inflation could push the Federal Reserve to raise interest rates, and Barclays expects hikes in December and January.
Who this affects
- MarketbearishMedium impact
- Tech-heavy investors hit hardest; Dow holders held up better.
- CompanybearishHigh impact
- CoreWeave and chipmakers fell sharply, hurting their shareholders.
- CompetitorsmixedLow impact
- Dow gained 0.7% for the week as money left tech.
- IndustrybearishHigh impact
- Chipmakers and AI data-center firms face debt worries.
Nasdaq vs S&P 500, Dow Jones, Russell 2000
| Nasdaq Composite^IXIC | 26,140.03 | -2.1% | -4.5% | +12.5% |
|---|---|---|---|---|
| S&P 500^GSPC | 7,659.44 | -1.1% | -1.9% | +11.9% |
| Dow Jones^DJI | 52,002.41 | -0.3% | +0.7% | +8.2% |
| Russell 2000^RUT | 2,721.37 | -1.7% | -3.0% | +9.6% |
As of 2026-10-16
How we got here
Nasdaq closes at 26,140, down 2.1%, ending a monthlong winning streak.
PHLX chip index falls 3.8%, an eighth straight daily drop and longest since 2008.
CoreWeave sinks 12%; its bonds sell off, with yields above 15%.
Brent crude touches $110, first time since May, on Strait of Hormuz tensions.
What to watch
- Tesla, Meta and Procter & Gamble begin a heavy week of quarterly earnings reports.2026-10-19
- Whether chipmakers extend their losing streak beyond eight days.2026-10-19
- Barclays expects 25-basis-point Fed rate hikes in December and January.Q4 2026
Educational content only. Not investment advice.
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