Nasdaq Slumps 2.4% as AI Data Center Debt and Spending Fears Mount

Key Facts

1The Nasdaq slumped 2.4% and the S&P 500 fell 1.3% on Friday amid fears over debt-fueled spending on AI data centers.

The Nasdaq slumped 2.4% and the S&P 500 fell 1.3% on Friday, October 16, 2026. The New York Post reported that the sell-off was driven by mounting fears over debt-fueled spending on AI data centers, as a crisis of confidence emerges regarding the return on investment for massive infrastructure projects.

NDAQ closed at $93.5 on October 15, 2026, prior to the broader tech sector decline. This market action follows a sharp drop in global AI-related debt issuance, which fell to $23 billion last month from $113 billion in June according to the Financial Times, signaling increased scrutiny over the high levels of leverage used to finance AI expansion.