US Equity Indexes Mixed This Week as CoreWeave Rattles AI Trade, Sparks Rotation Out of Technology

04:29 PM EDT, 10/16/2026 (MT Newswires) -- US equity indexes closed mixed as a rotation out of technology amid AI jitters outweighed hotter-than-expected inflation prints this week. * The S&P 500 closed at 7,659.44 on Friday, versus 7,815.31 a week ago. The Nasdaq Composite stood at about 26,140.03, compared with 27,372.43 a week earlier. The Dow Jones Industrial Average ended at 52,002.41, relative to 51,718.50 last week. * Technology hit the bottom of sector charts, while consumer defensive emerged as the leader. * This week, 17 of the bottom 20 names among stocks with a market capitalization exceeding $200 billion were from technology, according to data compiled by Finviz. * The cost of protecting CoreWeave's (CRWV) debt against default for five years rose to 1194.5 basis points Thursday, an intraday record, with swaps pricing in a chance of default at over 60% within the next five years, Bloomberg reported, citing data from ICE Data Services. * Bloomberg reported CoreWeave co-founders Michael Intrator, Brian Venturo and Brannin McBee sold $3.3 billion of the firm's shares since its March 2025 initial public offering, including $2.4 billion in 2026. CoreWeave shares sank 25% this week amid debt and credit risk concerns, which triggered a 25% sell-off in Nebius (NBIS), a 23% plunge in IREN (IREN), and a 9.3% drop in Oracle (ORCL) over the past five days. * September's hotter-than-expected core consumer price inflation and the fastest growth in producer prices in more than four years failed to spark a rally in US Treasury yields. The 10- and 30-year yields ended the week lower after rates sank on Wednesday and Thursday when consumer and producer prices were released. * Reflecting the downward movement in yields, the probability of the Federal Reserve leaving its target rate unchanged in October stood at 83%, up from 51% a month ago. The increase came entirely at the expense of the Fed raising rates by 25 basis points.