Nasdaq 100 Drops 5.5% as AI Debt Risks and Oil Prices Trigger Sell-Off

Huoxing Finance reports that on October 17, dual shocks from AI infrastructure financing risks and surging oil prices hit Wall Street, causing the Nasdaq 100 Index to fall 5.5% for the week—the largest weekly decline since the tariff turmoil in April 2025. The Philadelphia Semiconductor Index posted eight consecutive trading days of declines, the longest such streak since 2008, with a cumulative drop of approximately 16%. AI cloud provider CoreWeave became a focal point as yields on some of its bonds briefly surpassed 15%, sparking concerns over the cost of AI infrastructure financing, returns on capital expenditures, and corporate debt repayment capacity. CoreWeave’s stock fell 12% on Friday, down more than 50% from its year-to-date high. Meanwhile, Brent crude rose to around $110 per barrel, and WTI crude climbed 3.8% on Friday to $101.71. Rising oil prices have reignited inflation expectations, pushing the 10-year U.S. Treasury yield to 5.097%, reducing the safe-haven appeal of bonds during equity market declines. Market concerns regarding AI investments are shifting from computing demand to financing costs and profitability returns. Nevertheless, some investors continue to buy on dips; Cathie Wood’s ARK Investment Management increased its positions in CoreWeave and Cerebras Systems. Upcoming earnings reports from tech giants will be critical in determining whether AI-generated revenues can sustain high levels of capital spending.