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Investors pulled out of technology stocks on Friday, driving the Nasdaq Composite down more than 650 points, or 2.4%, to 26,116 in afternoon trading.
The index was headed for its first weekly loss in five weeks as concerns mounted over the heavy borrowing associated with the artificial intelligence sector.
The broader S&P 500 fell 1.2% and the Dow Jones Industrial Average dropped 0.6%. The selling pressure centered on companies financing the rapid buildout of data centers required for AI computing power.
Adam Crisafulli, head of Vital Knowledge, told CBS News that neocloud companies are financing much of their capital expenditures through debt and equity issuance rather than cash flow, raising concerns about mounting debt.
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