S&P 500 and Nasdaq close sharply lower as AI stock selloff weighs on markets

US stocks closed sharply lower Friday as renewed selling in artificial intelligence companies and semiconductor manufacturers dragged down major indexes, extending a difficult week for technology shares. The Nasdaq Composite declined 2.15%, while the S&P 500 fell 1.10% to 7,659.44. The Dow Jones Industrial Average slipped 0.36% to around 52,002, with technology stocks bearing the brunt of the losses. The declines reflected growing concerns about the sustainability of the AI infrastructure boom, particularly as companies increasingly rely on borrowed money to finance expensive data center projects. Rising oil prices also weighed on investor sentiment, adding to inflation concerns following Wednesday’s stronger than expected US consumer price report. AI infrastructure debt concerns deepen technology selloff The latest decline follows several sessions of pressure on chipmakers and companies providing computing infrastructure for artificial intelligence. Nvidia backed CoreWeave remained a focus of investor concerns after a sharp selloff in its corporate bonds pushed yields above 15%, reflecting growing doubts about the risks associated with heavily indebted AI infrastructure provid...