On October 16, 2026, the S&P 500 index declined by approximately 1.2% to close at 7,650, while the Nasdaq Composite fell by 2.2% to 26,128. This performance marked the Nasdaq's sharpest weekly drop in 18 months.
The semiconductor index decreased by 1.8%, representing its most significant decline since April 2025. Shares of Meta and Microsoft also saw a downturn, reflecting broader market concerns regarding AI-related expenditures.
CoreWeave, a data center operator supported by Nvidia, experienced a share price drop of over 10% on October 16, with a cumulative decline of nearly 25% over recent sessions. Bond yields for the company have risen above 15%.
Market volatility was triggered by higher-than-expected September Consumer Price Index and Producer Price Index data, which increased expectations for potential Federal Reserve interest rate hikes.
Anthropic faces valuation scrutiny ahead of its planned IPO despite reporting a 45% sequential increase in third-quarter revenue. Investors are showing increased caution toward the pricing of upcoming AI company public offerings.
