Nasdaq sheds 2.14% in worst week since June as AI stocks pull back
The Nasdaq Composite shed 2.14% to close at 26,140.03 on Oct. 14, 2026, anchoring its worst week since June amid a sharp pullback in artificial intelligence stocks and climbing crude oil prices. The broader S&P 500 dropped 1.09% to finish at 7,659.44, while the Dow Jones Industrial Average fell 175.28 points, or 0.34%, to 52,002.41.
Both the S&P 500 and the Nasdaq finished the trading session below their 50-day moving averages. The retreat pushed the Cboe Volatility Index (VIX) above 22 for the first time in four months.
Semiconductor Losses Drag Down Benchmarks
Chipmakers faced severe pressure throughout the week, driving major indexes downward. The VanEck Semiconductor ETF (SMH) tumbled 3% on Friday alone, paced by steep declines in Micron Technology, Advanced Micro Devices, and Sandisk. Semiconductors struggled as investors grew increasingly jittery regarding rising competition from China.
The SMH lost 10% for the week, marking its largest weekly decline since April 2025. This semiconductor slide, combined with broader weakness across artificial intelligence-linked equities, dragged the S&P 500 down roughly 2% for the week. The Nasdaq fared worse, shedding more than 4%.
At the same time, market participants expressed growing anxiety over the sheer volume of borrowing undertaken by technology firms to fund the rapid artificial intelligence infrastructure buildout. Shares of neoclouds such as CoreWeave dropped nearly 12% on Friday, expanding the company’s week-to-date losses to 25% as its total debt load surpassed $51 billion.
“The question is: Is this a systemic issue?” said Michael Rosen, Angeles’ chief investment officer. “Obviously, increased debt issuance is something to observe and continue to watch and be concerned about if it continues to get to levels of excessiveness. But we’re not remotely close to that right now.”
Energy Gains Counterbalance Industrial Resilience
While technology shares reeled, energy stocks moved higher on Friday to cushion the blow for the Dow Jones Industrial Average, which managed a 0.7% advance for the week bolstered by names like Chevron. Oil prices climbed as geopolitical tensions intensified between the United States and Iran, alongside ongoing conflict between Russia and Ukraine.
West Texas Intermediate crude futures advanced 3.51% to settle at $101.41 per barrel. Brent crude futures moved up 3.72% to close at $109.86.
These elevated energy prices aggravated broader inflationary pressures already troubling investors. Wholesale inflation recorded its largest gain since 2022 during the week, while consumer inflation stayed stubbornly above the Federal Reserve’s 2% target.
Federal Reserve Chairman Kevin Warsh addressed an International Monetary Fund event in Bangkok overnight. While he refrained from explicitly stating whether the central bank would sanction a rate hike before the year concludes, traders interpreted his remarks as an indication that monetary policymakers will hold policy steady during their upcoming deliberations.
The CME Group’s FedWatch tool indicates an 82% probability that the central bank will keep its benchmark overnight rate unchanged at its scheduled Oct. 27–28 meeting.