Nasdaq 100 Falls 1.3% as AI-Linked Stocks Slide

U.S. stocks moved in opposite directions at midday Friday. The Nasdaq 100 fell more than 1%, with AI-linked shares under pressure amid concerns about AI financing, while a shift toward value and defensive stocks supported the Dow Jones. The Nasdaq 100 lost 1.3%, or 400 points, to about 29,535.

CoreWeave Inc. (NASDAQ: CRWV) dropped 9.3% as concerns persisted about debt levels among AI infrastructure companies. The neocloud’s debt-insurance costs reached a record this week. IREN Ltd.

(NASDAQ: IREN) and Applied Digital Corp. (NASDAQ: APLD) each fell 7.5%, while Super Micro Computer Inc. (NASDAQ: SMCI) declined 7.4%. Memory stocks led the technology-sector losses.

Micron Technology Inc. (NASDAQ: MU) fell 3.6% to about $898, and Sandisk Corp. (NASDAQ: SNDK) shed 4.2%. The iShares Semiconductor ETF (NYSE: SOXX) was on track for its ninth consecutive daily decline, its longest such streak since 2006.

The S&P 500 slipped 0.3% to about 7,719. The Dow Jones Industrial Average rose 150 points, or 0.3%, to roughly 52,328. Oil remained elevated as conflict around the Strait of Hormuz kept supply risks in focus. West Texas Intermediate crude for December delivery traded near $95.63 per barrel, down 2.4%, ending a Brent crude added 0.3% to $106.19 a barrel.

Treasury yields were near 5.1% for the 10-year note, roughly 4.7% for the 2-year and around 5.4% for the 30-year. The 10-year yield remained about 14 basis points lower for the week, though its elevated level continued to pressure long-duration growth stocks. On Friday, Fed Chair Kevin Warsh joined IMF Managing Director Kristalina Georgieva for a fireside chat at the IMF-World Bank meetings in Bangkok. Asked whether the Fed might raise rates at the Oct.

28 meeting, Warsh said, “I don’t prejudge meetings,” rejected forward guidance and urged investors to follow the data. Earlier in the week, consumer prices in September increased 0.6% from the prior month and 3.7% year over year, a tenth above consensus. Core CPI rose 0.3%, compared with the 0.2% expected. Producer prices climbed 1.3% on the month and 6.3% year over year, while energy prices increased 10.8%.

Gold futures gained about 0.6% to roughly $4,196 an ounce as the dollar and Treasury yields eased, bringing the metal back toward $4,200. Bitcoin (CRYPTO: BTC) traded near $81,300, about 36% below its record high of $126,198, reached on Oct. 6, 2025, and held up despite the hot inflation readings. CoreWeave was described as facing a “Darwin moment,” with credit markets pricing in 60% default odds.

At 12:00 PM ET, the S&P 500 stood at 7719.33, down -0.32% for the day, while its month-to-date gain was +0.89% and its year-to-date advance was +12.77%. The Dow Jones was at 52327.82, up +0.29% on the day, +2.79% month to date and +8.88% year to date. The Nasdaq 100 fell -1.34% to 29535.32, with a -2.87% month-to-date decline and a +16.97% year-to-date gain. The Russell 2000 was at 2748.88, down -0.66% for the day and -1.72% month to date, while remaining up +10.76% year to date.

According to the Pro platform, the Vanguard S&P 500 ETF (NYSE: VOO) fell 0.3%, and the SPDR Dow Jones Industrial Average ETF Trust (NYSE: DIA) rose 0.3%. The Invesco QQQ Trust (NASDAQ: QQQ) slid 1.3%, while the iShares Russell 2000 ETF (NYSE: IWM) declined 0.7%. Fears over AI debt weighed on CoreWeave and software stocks, while utilities, energy and metals led. The Utilities Select Sector SPDR Fund (NYSE: XLU) topped S&P 500 sectors, gaining 1.3%.

The Materials Select Sector SPDR Fund (NYSE: XLB) and the Energy Select Sector SPDR Fund (NYSE: XLE) each advanced 1.1%. The Consumer Staples Select Sector SPDR Fund (NYSE: XLP) also rose 1.1%; the Real Estate Select Sector SPDR Fund (NYSE: XLRE) added 1.0%, and the Financial Select Sector SPDR Fund (NYSE: XLF) gained 0.8%. Technology was lower: the Technology Select Sector SPDR Fund (NYSE: XLK) was the The technology sector was the weakest group, falling 1.8%, while the Communication Services Select Sector SPDR Fund (NYSE: XLC) declined 0.7%. The Health Care Select Sector SPDR Fund (NYSE: XLV) was unchanged.

Among industry funds, the SPDR S&P Metals & Mining ETF (NYSE: XME) rose 1.4%, the VanEck Oil Services ETF (NYSE: OIH) gained 1.1%, and the SPDR S&P Oil & Gas Exploration & Production ETF (NYSE: XOP) advanced 1.0%. Software and cybersecurity shares were among the biggest decliners. Twilio Inc. (NYSE: TWLO) led Russell 1000 losses, dropping 10.7%.

Okta Inc. (NASDAQ: OKTA) fell 8.9%, and DigitalOcean Holdings Inc. (NYSE: DOCN) lost 8.7%. CrowdStrike Holdings Inc.

(NASDAQ: CRWD) declined 7.4%, while Palo Alto Networks Inc. (NASDAQ: PANW) and Snowflake Inc. (NYSE: SNOW) each fell 7.1%. Moderna Inc.

(NASDAQ: MRNA) dropped 10%, relinquishing part of a roughly 6% gain from Thursday that was linked to a rotation into health care. Alcoa Corp. (NYSE: AA) jumped 6.6% after posting third-quarter adjusted EPS of $1.82, compared with the $1.49 consensus. Revenue was $3.7 billion, below the $3.76 billion estimate.

The aluminum producer also agreed to sell portions of its Massena East site in New York for data center development, with potential The company expects proceeds of up to $315 million and warned of about $60 million in Q4 cost headwinds. Elsewhere, Strategy Inc. (NASDAQ: MSTR) fell 7.9% after MSCI proposed rules that could remove bitcoin-holding companies such as Strategy from its indexes. Friday’s Russell 1000 top gainers were Alcoa Corporation, up +6.58%; CAVA Group, Inc.

(NYSE: CAVA), up +4.67%; Planet Fitness, Inc. (NYSE: PLNT), up +4.53%; DICK’S Sporting Goods, Inc., up +4.38%; and Honeywell Aerospace Inc., up +3.90%. The top Russell 1000 decliners on Friday were Twilio Inc., down -10.66%; Moderna, Inc., down -10.01%; CoreWeave, Inc., down -9.28%; Okta, Inc., down -8.86%; and DigitalOcean Holdings, Inc., down -8.75%. Read Also: QUICK SPARK: South Korea’s KOSPI Logs Worst Week Since 2008’s Lehman Brothers Collapse