Tech stocks tumble as AI debt fears rattle Wall Street

Updated on: October 16, 2026 / 4:39 PM EDT / CBS News

Financial markets slumped on Friday as investors bailed on technology stocks amid concerns that companies exposed to artificial intelligence are starting to wobble.

The tech-heavy Nasdaq Composite tumbled 573 points, or 2.1%, to end at 26,140, closing out its worst week since June. The broader S&P 500 and blue-chip Dow Industrial Average sank 1.1% and 0.3%, respectively.

Chipmakers and other tech companies have been under pressure this week as investors worry about the heavy borrowing associated with the emergence of AI and the rapid buildout of thousands of data centers required to provide computing power for AI models.

So-called neocloud companies like CoreWeave, which provide the brute computing power AI models need to function, were particularly hard hit. That's because they are financing much of their capital expenditures through debt and equity issuance rather than cash flow, raising investor concerns about mounting debt, market analyst Adam Crisafulli, head of Vital Knowledge, told CBS News.

Shares of CoreWeave slid nearly 12% on Friday and dropped roughly 24% this week as investors nervously eye its mounting debt. Micron Technology fell 5.6%, Advanced Micro Devices dropped 6%, Broadcom was down 4.5%…

Original source: https://www.cbsnews.com/moneywatch/