Stock Market Update
16-Oct-26 13:55 ET
Momentum plug pulled on AI stocks
Dow -181.79
at 51996.11,
Nasdaq -512.40
at 26221.07,
S&P -77.63
at 7666.50
[BRIEFING.COM] The major indices recently hit new lows for the session before getting a needed bounce close to the bottom of the hour.
It has been a tough day for the AI trade and many high-beta stocks, as festering concerns about financing costs and the ability to repay debt burdens in the future have pulled the plug for now on these momentum favorites.
The loss of momentum has led to a lot of outsized losses in individual stocks this week. For instance, CoreWeave (CRWV 61.83, -7.86, -11.28%) is down 24.7%, Dell (DELL 459.20, -14.19, -3.00%) is down 21.7%, and Applied Materials (AMAT 417.74, -12.27, -2.85%) is down 17.6%, to name a few.
Readings at the index level convey the selling pressure that has cut across the growth stock landscape. The Nasdaq 100 is down 5.1% week-to-date, the Russell 3000 Growth Index is down 4.7%, and the Nasdaq Composite is down 4.2%.
Meanwhile, the Invesco S&P 500 High Beta ETF (SPHB 140.23, -4.13, -2.86%) is down 8.9%.
