The stock market wrapped up another rough week, with AI and tech stocks leading the decline. Despite some positive geopolitical developments, such as Donald Trump’s call with Canada and the EU’s proposed trade concessions, investor sentiment remained weak.
The Nasdaq took a significant hit, dropping around 3% on Friday and closing the week down nearly 9%. The index had initially opened above 20,000 points on Monday and saw gains in the first two days before reversing sharply midweek. The timing couldn’t have been worse for CoreWeave’s IPO, which would likely have struggled without support from key backers. Meanwhile, Lululemon’s weak financial outlook sent its stock plunging 14%.
Nasdaq Chart Weekly – Failing at the 50 SMA
CoreWeave’s AI-Centric IPO Faces Market Headwinds
CoreWeave, an AI-focused cloud computing company backed by Nvidia, made its stock market debut under challenging conditions. With the Nasdaq sliding and investors growing wary of the AI stock bubble, sentiment was already negative heading into the IPO. On the eve of its launch, CoreWeave was forced to cut its share price from the initially expected range of $47-$55 down to $40.
Despite this adjustment, the stock still struggled, closing its first day at $39, down 2%. Nvidia had attempted to support the launch by purchasing $250 million worth of shares at the IPO price, but the weak demand underscored broader concerns about AI-related valuations.
CoreWeave Still Marks a Major Tech IPO Despite Weak Start
Despite the rough debut, CoreWeave’s IPO remains the largest U.S. tech listing since 2021. The company managed to raise $1.5 billion, though the market’s growing skepticism toward AI stocks raises questions about its near-term performance. With the AI stock frenzy cooling off and economic uncertainty rising, CoreWeave’s future will dependon whether investors regain confidence in the sector.
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