Oil rose to over 100 dollars and the Nasdaq fell sharply

US stocks fell on Friday as investor concerns about the profitability of AI investments and debt financing weighed on technology companies. At the same time, the sharp rise in oil prices increased inflationary concerns.

The S&P 500, which broadly tracks large companies, fell 1.1 percent. The technology-focused Nasdaq weakened by 2.2 percent. The flagship Dow Jones index fell 0.3 percent.

According to the news agency Bloomberg, the falling streak of chip stocks stretched to the eighth day, the longest since 2008.

The chip sector has been weighed down by concerns about Chinese competition. The VanEck Semiconductor ETF was down ten percent during the week and on its way to its biggest weekly drop since July.

Other stocks related to artificial intelligence were also under pressure. During the week, the S&P 500 fell by about two percent and the Nasdaq by more than four percent. The Dow Jones, on the other hand, rose by less than one percent during the week.

The discussion on artificial intelligence stocks has also expanded to the debt financing of companies. CoreWeave fell by 12 percent and was down more than 25 percent during the week. According to the news service CNBC, the company’s total debt has risen to more than 51 billion dollars. According to Bloomberg, the company’s bonds have recently traded at levels that typically indicate financial distress.

CoreWeave has financed its construction related to artificial intelligence computing heavily with high yield debt. High government bond interest rates and persistent inflation raise the costs of such financing.

Energy stocks went against the flow. An oil company Chevronin the rise of companies like

The price of oil rose sharply. US WTI crude oil rose 3.8 percent to $101.65 a barrel and Brent rose to $110.

In the interest rate market, the interest rate on the US 10-year government bond rose two percentage points to 5.08 percent.

Network equipment manufacturer on the New York Stock Exchange Nokian depository receipt, or ADR, fell 4.5 percent to $9.14.