According to reports, just 10 days ago, the Nasdaq and S&P 500 indices had reached record highs. However, massive debt in building AI infrastructure, pressure from higher interest rates, and uncertainty over earning adequate profits against investments have increased market concerns.
At the center of this concern are ‘neocloud’ companies, which rent computing capacity to AI companies. CoreWeave, backed by Nvidia and listed on the stock market in 2025, has become a major source of concern in this regard. Gil Luria, head of technology research at D.A. Davidson, expressed doubt over whether the company, which has taken on massive debt for growth, will be able to make enough profit to repay that debt.
On Thursday, Nvidia CEO Jensen Huang expressed optimism about CoreWeave, but the next day the company's share price fell by nearly 12 percent. Over the whole week, the stock fell by nearly a quarter. Since its listing last March, the stock is currently more than 65 percent below its highest price.
Meanwhile, for the first time since May, the price of Brent crude oil has reached $110 per barrel. This has raised fears of rising inflation. Alongside, semiconductor makers' shares also saw a big fall. The chip companies' index fell 3.8 percent on Friday; over the whole week it fell 11.4 percent, the worst weekly performance since April 2025.
Its impact has also been felt in Asian markets. South Korea's main stock index, Kospi, fell 14.5 percent in a week, the biggest weekly decline since 2008. Meanwhile, the VIX index, which measures market volatility, rose more than 20 percent on Friday to surpass 20 points. From its peak earlier in the month, the S&P 500 has fallen nearly 2 percent and the Nasdaq nearly 5 percent.




