Tech stocks fall sharply as investors retreat from artificial intelligence bets

U.S. technology stocks fell sharply last week, with the Nasdaq dropping around 5% for its worst week since June. The S&P 500 also lost more than 2% over the same period. Both indexes had hit record highs just ten days earlier.

Investors are worried about whether AI companies can make enough profit to pay their debts. Borrowing costs have risen, which makes this harder.

Semiconductor stocks were hit especially hard. A key semiconductor index fell nearly 4% on Friday alone and has lost more than 20% of its value since June. Shares in CoreWeave, a cloud computing company, lost a quarter of their value last week and are now down more than 60% since the company went public in March 2025.