Wall Street ends week lower as AI spending doubts and telecom slump weigh on markets
Markets closed lower Friday, with the Dow down 1.23%, the S&P 500 off 0.52% and the Nasdaq slipping 0.21%, amid worries about AI financing and telecom declines.
Wall Street finished the week in the red, with the Dow Jones Industrial Average down 1.23% to 52,215.16, the S&P 500 losing 0.52% to 7,623.68 and the Nasdaq Composite slipping 0.21% to 25,955.34. The Nasdaq’s decline followed its largest one-day drop since June, reflecting heightened anxiety about the cost of financing heavy AI investment. Telecom shares slumped, dragging the communication services sector after reports that SpaceX is seeking thousands of cell sites for a new carrier, sending AT&T and T-Mobile down nearly 8% each.
Energy stocks rose 2.5% as Brent crude hit its highest level since late April amid Houthi attacks in Saudi Arabia. Investors are eyeing earnings from AI hyperscalers Alphabet, Microsoft and Amazon next week, while the Federal Reserve is expected to hold rates steady and the November 3 midterm elections loom.
Why it matters
The slide shows investor sensitivity to AI spending costs and telecom weakness ahead of key earnings and elections.
How this story developed
- Oct 13 Asian markets tumble as US chip slump drags South Korean shares below 3%
- Oct 14 US semiconductor index fell 2.7% and the Nasdaq 100 slipped 0.7%, widening the regional decline.
- Oct 16 CoreWeave rebounded 6% after a steep decline, lifting broader semiconductor shares.
- Oct 20 Asian markets slipped following earlier AI‑stock rebounds, as funding concerns and lower oil prices outweighed the US chip rally.
- Oct 20 AI-focused shares fell after a brief rebound, while oil prices rose on Middle-East tensions and investors await upcoming earnings reports.
- Oct 22 AI funding concerns and higher oil prices have pushed U.S. markets lower since the earlier rally.
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