A sharp selloff in artificial-intelligence stocks dragged Wall Street to its worst week since June. The decline hit companies across the AI supply chain, from data centers to software giants.
CoreWeave and Alphabet were among the hardest-hit names. Their losses reflected growing investor doubts about the pace of AI spending. The pullback erased billions in market value over several sessions.
Treasury yields fell as investors moved toward safer assets. The drop in yields signaled rising demand for government bonds. It also pointed to concerns about economic momentum.
The selloff marked a reversal for a sector that had driven most market gains this year. AI-related firms had benefited from heavy corporate investment. That enthusiasm now faces tougher scrutiny.
Analysts pointed to stretched valuations as a key trigger. Many AI stocks had traded at steep premiums to earnings. Even minor disappointments can spark outsized declines in such conditions.
The broader market felt the impact as major indexes closed lower. Technology-heavy benchmarks posted the steepest drops. Other sectors held up better but still ended in negative territory.
Investors are watching upcoming earnings for clues about AI demand. Companies that spend heavily on AI must show returns. Without clear profits, the trade may stay under pressure.
