AI stock sell-off and rising oil prices weigh on US stocks, with the Nasdaq posting its worst weekly performance since June.

BlockBeats news, October 18 — According to CNBC, U.S. stocks closed lower on Friday, with the Nasdaq down 2.14%, the S&P 500 down 1.09%, and the Dow down 0.34%. Both the Nasdaq and S&P 500 closed below their 50-day moving averages, and the VIX rose above 22 for the first time in four months. For the week, the Nasdaq fell more than 4%, its worst weekly performance since June; the S&P 500 fell about 2%, while the Dow rose 0.7%.

Technology and AI-related stocks continued to face selling pressure. The semiconductor ETF SMH fell 3% on the day and 10% for the week, its largest weekly drop since April 2025, led lower by Micron, AMD, and SanDisk. The market is concerned about competition from Chinese manufacturers and about technology companies overleveraging for AI infrastructure. AI cloud service provider CoreWeave fell nearly 12% on the day and 25% for the week, with total debt exceeding $51 billion.

Rising tensions between the United States and Iran and between Russia and Ukraine pushed oil prices higher. WTI crude futures rose 3.51% to settle at $101.41 per barrel; Brent crude futures rose 3.72% to settle at $109.86 per barrel. Energy stocks rose against the trend, with shares such as Chevron helping to limit the Dow's decline.