Nasdaq Sinks 2.1% as AI Debt Worries Hit Tech; CoreWeave Slides

Wall Street ended Friday lower as concerns over AI data-center financing weighed on technology shares. The Nasdaq fell 2.14% to 26,140.03, the S&P 500 lost 1.09% to 7,659.44, the Russell 2000 dropped 1.72% and the Dow slipped 0.34% to 52,002.41. The S&P technology sector fell more than 3%, and nearly two-thirds of U.S. issues declined.

CoreWeave was among the hardest hit, with midday losses near 12%, as investors focused on the cloud provider's roughly $50 billion in debt. Nvidia, its second-largest investor with a stake of about 10%, said CoreWeave's financial strength is improving and that it does not need to backstop the company. Twilio, Fastly and Nebius also fell sharply, each down more than 11% at midday.

The selloff reversed a rebound on Thursday, when yields eased and defensive sectors led. For investors with exposure to growth and AI-linked names, the session was a reminder that financing costs and debt loads are now a central part of the technology story.