Wall Street posts worst week since June as AI rout deepens

· Politics · United States

The S&P 500 on Friday capped its worst week since June as a deepening selloff in artificial-intelligence stocks and a spike in crude prices renewed inflation fears. The Nasdaq 100 slid to its worst week since the April 2025 tariff turmoil, with chipmakers under heavy pressure. CoreWeave fell 25% for the week, and anxiety spread to its debt: bond yields and credit default swaps surged as investors questioned the economics of AI infrastructure financing. The VIX, Wall Street's fear gauge, rose above 22 for the first time in four months, and traders positioned for further gains. Big US bank shares logged their worst weekly losing streak since the 2008 financial crisis after quarterly earnings failed to lift sentiment.

Why it matters：The selloff shows investors starting to price the credit risk behind the AI boom, a shift that could raise borrowing costs for data-center builders and cool a key driver of global equity gains.

Key points

  • S&P 500 and Nasdaq 100 logged their worst week since June and April 2025 respectively.
  • CoreWeave dropped 25% for the week as its bond yields and credit default swaps surged.
  • The VIX rose above 22 for the first time in four months.

Sources (original reporting)

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