Nasdaq Index: AI Selloff Deepens as Chips and CoreWeave Break

• The VanEck Semiconductor ETF dropped 3% Friday and 10% for the week, its largest weekly decline since April 2025, with eight consecutive days of losses in the PHLX chip index.
• CoreWeave plunged nearly 12% Friday and 25% for the week as investors shifted focus from AI demand to the unsustainable cost of financing infrastructure expansion.
• The VIX volatility index rose above 22 for the first time in four months while the Nasdaq broke below its 50-day moving average at 26,631.21, confirming a bearish technical trend.

Summary

Market Performance

The Nasdaq Composite fell 572.99 points (-2.15%) on Friday, October 17, 2026, closing at 26,140.03. The index posted its worst weekly decline in four months, losing more than 4% for the week. The market recorded 263 new lows versus only 49 new highs, signaling broad-based selling pressure.

Key Drivers of Decline

Semiconductor Sector: The VanEck Semiconductor ETF dropped 3% Friday and 10% for the week—its largest weekly decline since April 2025. The PHLX chip index posted eight consecutive sessions of losses. Major chip stocks including Broadcom (-3.6%), Micron, AMD, and Sandisk fell on concerns about memory-chip supply competition from China.

CoreWeave Financing Crisis: AI infrastructure company CoreWeave plunged nearly 12% Friday and approximately 25% for the week. The company's debt exceeds $51 billion, with bond yields surging above 15%. This highlighted growing concerns about AI infrastructure financing costs, shifting focus from demand to capital expenses.

Rising Volatility: The VIX volatility index climbed above 22 for the first time in four months, confirming the selloff's severity beyond a routine pullback.

Technical Outlook

The Nasdaq broke below its 50-day moving average at 26,631.21, entering a confirmed downtrend. Next support level sits at 25,802.96. Resistance zone ranges from 26,536.32 to 26,762.86.

Market Implications

Investors await earnings from Tesla and Meta Platforms next week amid growing scrutiny of AI buildout costs. Rising oil prices compound inflation concerns, while the sector rotation suggests the AI premium is being reassessed across technology stocks.