Tech Stocks Slide as Credit Pressures Mount

The Nasdaq Composite bore the brunt of the volatility, dropping 2.14% to 26140.03 and ending the week down 4.5%. CoreWeave, a central player in the AI infrastructure build-out, saw its shares tumble 12%, leaving the stock more than 50% below its yearly highs. The company, which has leveraged at least $35 billion to construct data centers, faces mounting pressure as capital costs rise to levels that hedge fund manager Lorenzo Di Mattia describes as unaffordable. Nvidia and Dell Technologies followed the downward trend, with Dell suffering its worst five-day performance since 2018.

While tech struggled, macroeconomic headwinds intensified. Oil futures surged 3.5% to $101.41 a barrel amid renewed geopolitical instability in the Strait of Hormuz and strikes on Russian refineries. This spike in energy costs has reignited inflation concerns, pushing 10-year Treasury yields to 5.097%. Despite the gloom, pockets of resilience remained: Varonis Systems jumped 2.9% following a $6.3 billion acquisition offer from Proofpoint, while Apple shares gained 0.4% as strong demand for its new foldable smartphone provided a rare defensive buffer against the broader market rout.