U.S. stocks diverged at midday Friday as an AI-financing scare dragged the Nasdaq 100 down more than 1%, while rotation into value and defensive names lifted the Dow Jones.

The Nasdaq 100 dropped 1.3%, or 400 points, to about 29,535, pressured by AI-linked names.

CoreWeave Inc. (NASDAQ: CRWV) dropped 9.3% as worries over the debt load of AI infrastructure companies lingered; the neocloud's debt-insurance costs hit a record this week.

Peers IREN Ltd. (NASDAQ: IREN) and Applied Digital Corp. (NASDAQ: APLD) fell 7.5% each, and Super Micro Computer Inc. (NASDAQ: SMCI) lost 7.4%.

Memory stocks led the tech slide.

Micron Technology Inc. (NASDAQ: MU) fell 3.6% to about $898 and Sandisk Corp. (NASDAQ: SNDK) lost 4.2%, while the iShares Semiconductor ETF (NYSE: SOXX) was on track for a ninth straight daily decline, the longest such streak for the fund since 2006.

The S&P 500 slipped 0.3% to about 7,719, while the Dow Jones Industrial Average gained 150 points, or 0.3%, to roughly 52,328.

Oil stayed elevated as conflict around the Strait of Hormuz kept supply risks front and center. West Texas Intermediate crude for December delivery traded near $95.63 per barrel, down 2.4%, ending a six-day winning streak but still on track for a weekly gain.

Brent crude edged up 0.3% to $106.19 per barrel.

The 10-year Treasury yield sat around 5.1%, with the 2-year at roughly 4.7% and the 30-year near 5.4%. The 10-year was still down about 14 basis points on the week, but its elevated level continued to weigh on long-duration growth stocks.

On Friday…

Fed Chair Kevin Warsh spoke in a fireside chat with IMF Managing Director Kristalina Georgieva at the IMF-World Bank meetings in Bangkok.

Asked about a hike at the Oct. 28 meeting, Warsh said, "I don't prejudge meetings," rejected forward guidance, and told investors to watch the data.

Earlier in the week, September consumer prices rose 0.6% on the month and 3.7% from a year earlier, a tenth above consensus, with core CPI up 0.3% versus the 0.2% expected. Producer prices jumped 1.3% on the month and 6.3% year over year, with energy up 10.8%.

Gold futures rose about 0.6% to roughly $4,196 per ounce as the dollar and Treasury yields eased, lifting the metal back toward $4,200.

Bitcoin (CRYPTO: BTC) traded near $81,300, about 36% below its record of $126,198 set on Oct. 6, 2025, holding up despite the hot inflation prints.

Friday's Performance In Major US Indices

According to market data:

• The Vanguard S&P 500 ETF (NYSE: VOO) fell 0.3%.
• The SPDR Dow Jones Industrial Average ETF Trust (NYSE: DIA) rose 0.3%.
• The Invesco QQQ Trust (NASDAQ: QQQ) slid 1.3%.
• The iShares Russell 2000 ETF (NYSE: IWM) declined 0.7%.

AI Debt Fears Hammer CoreWeave And Software As Utilities, Energy And Metals Lead

The Utilities Select Sector SPDR Fund (NYSE: XLU) led S&P 500 sectors, rising 1.3%, followed by the Materials Select Sector SPDR Fund (NYSE: XLB) with a 1.1% gain and the Energy Select Sector SPDR Fund (NYSE: XLE) with a 1.1% advance.

The Consumer Staples Select Sector SPDR Fund (NYSE: XLP) rose 1.1%, the Real Estate Select Sector SPDR Fund (NYSE: XLRE) added 1.0%, and the Financial Select Sector SPDR Fund (NYSE: XLF) gained 0.8%.

On the downside, the Technology Select Sector SPDR Fund (NYSE: XLK) was the weakest group, sliding 1.8%, while the Communication Services Select Sector SPDR Fund (NYSE: XLC) fell 0.7%.

The Health Care Select Sector SPDR Fund (NYSE: XLV) was flat.

Among industry funds, the SPDR S&P Metals & Mining ETF (NYSE: XME) gained 1.4%, the VanEck Oil Services ETF (NYSE: OIH) rose 1.1%, and the SPDR S&P Oil & Gas Exploration & Production ETF (NYSE: XOP) added 1.0%.

Software, Cybersecurity Stocks Get Slammed

• Twilio Inc. (NYSE: TWLO) led Russell 1000 decliners with a 10.7% drop
• Okta Inc. (NASDAQ: OKTA) fell 8.9%, and
• DigitalOcean Holdings Inc. (NYSE: DOCN) slid 8.7%.
• CrowdStrike Holdings Inc. (NASDAQ: CRWD) fell 7.4%
• Palo Alto Networks Inc. (NASDAQ: PANW) fell 7.1% and
• Snowflake Inc. (NYSE: SNOW) fell 7.1%
• Moderna Inc. (NASDAQ: MRNA) fell 10%, giving back part of a roughly 6% rally on Thursday tied to rotation into health care.

On the Upside

Alcoa Corp. (NYSE: AA) jumped 6.6% after reporting third-quarter adjusted EPS of $1.82 versus the $1.49 consensus, although revenue of $3.7 billion missed the $3.76 billion estimate.

The aluminum producer also agreed to sell portions of its Massena East site in New York for data center development, with potential proceeds of up to $315 million, while warning of about $60 million in Q4 cost headwinds.

Elsewhere, Strategy Inc. (NASDAQ: MSTR) fell 7.9% after MSCI proposed rules that could remove bitcoin-holding companies like it from its indexes;

Friday's Russell 1000 Top Gainers

Friday's Russell 1000 Top Losers