The S&P 500 posted a 2.68% weekly loss as AI-exposed stocks like CoreWeave and the Philadelphia semiconductor index saw sharp declines, though strong Q3 earnings growth of 34% provides a buffer against deeper market instability.
The semiconductor index dropped 12.15% on the week, far more than the broader market, showing AI-related selling pressure is concentrated here, though it bounced 4.21% on Friday. The sharp underperformance suggests continued volatility risk in the near term, partly offset by the strong overall earnings backdrop.
CoreWeave, an AI-exposed name, fell another 15.44% on the week, showing it remains a focal point of the AI selloff, though it gained 6.28% on Friday. Sustained heavy selling suggests elevated downside risk in the coming days, partially counteracted by the bounce and the strong earnings season.
The index fell 2.68% last week, its worst since April 2025, driven by AI-exposed names, but closed Friday up 0.31% at 7377. Deutsche Bank notes US Q3 earnings growth likely held at 34% with record-strength breadth, which argues against a deeper slide. Positive earnings and negative AI momentum largely offset.
The S&P 500 closed at 7377, recording its worst weekly performance since April 2025 with a 2.68% decline. While AI-exposed stocks faced significant pressure, Deutsche Bank analysts highlight that broad-based US earnings growth remained strong at 34% in Q3, suggesting resilience despite the sector-specific volatility.
The Philadelphia semiconductor index lost 12.15% over the week, rebounding 4.21% on Friday.
CoreWeave fell another 15.44% over the week but rose 6.28% on Friday.
Heavy losses in AI-exposed stocks pushed the index down 2.68% for the week to 7377, though it recovered 0.31% on Friday.
Deutsche Bank's team found Q3 US earnings growth likely held at 34%, with the median company up 14%, one of the strongest rates since the GFC.