Nasdaq records its worst weekly performance since June amid AI stock sell-off and oil price surge

Huo Xing Finance reports that on October 18, according to CNBC, U.S. stocks closed lower on Friday, with the Nasdaq down 2.14%, the S&P 500 down 1.09%, and the Dow Jones down 0.34%. Both the Nasdaq and S&P 500 closed below their 50-day moving averages, while the VIX rose above 22 for the first time in four months. For the week, the Nasdaq fell over 4%, marking its worst weekly performance since June; the S&P 500 declined about 2%, while the Dow rose 0.7%. Technology and AI-related stocks continued to be sold off. The semiconductor ETF SMH dropped 3% on the day and 10% for the week, recording its largest weekly decline since April 2025, led by declines in Micron, AMD, and SanDisk. Market concerns center on competition from Chinese manufacturers and excessive debt accumulation by tech companies to fund AI infrastructure. AI cloud provider CoreWeave fell nearly 12% on the day and 25% for the week, with total debt now exceeding $51 billion. Escalating tensions between the U.S. and Iran, as well as Russia and Ukraine, pushed oil prices higher. WTI crude futures rose 3.51% to close at $101.41 per barrel; Brent crude futures climbed 3.72% to close at $109.86 per barrel. Energy stocks rose against the trend, with companies like Chevron helping to limit the Dow’s losses.