AI Trade Cracks Widen: Nasdaq Posts Worst Week Since June, Chip Index's Longest Losing Streak Since 2008
IXIC sits 26% above its 52-week low of $20,690.249.
Summary
The Nasdaq composite fell 4.5% this week, its worst since June, as the AI trade splintered across equities and credit. The PHLX semiconductor index dropped 3.8% Friday, its longest losing streak since 2008, and Dell plunged 22% for its worst week on record. CoreWeave slid 12% Friday and 25% for the week as data-center bond weakness spread from junk-rated issuers into investment-grade names. A Thursday Apple-Meta partnership on locally-run AI models added to fears that data-center demand could slow, while a hot inflation print pushed the 10-year Treasury yield down 0.146 point to 5.097% as investors fled to government bonds. The S&P 500 lost 1.9% for the week; the Dow, with little tech exposure, gained 0.7%. Fed Chair Kevin Warsh's Bangkok remarks were read as a signal the central bank holds at its Oct. 27-28 meeting, though futures still price roughly an 85% chance of a hike by year-end.
At the time of this announcement, IXIC was trading at $26,140.03 on NASDAQ in the Technology sector. The 52-week trading range was $20,690.25 to $27,722.75. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.