CoreWeave's Weak Forecast Deepens Tech Sell-off Following Nvidia's $260 Billion Wipeout

Nvidia's historic $260 billion market value loss has triggered a broader market downturn, pushing major indexes below key technical support levels. The sell-off was further exacerbated by CoreWeave, which issued a weak financial forecast that sent its shares down 11%, with analysts warning of a potential 20% single-day plunge. Paradoxically, the company's AI backlog continues to grow, highlighting a disconnect between long-term demand and the immediate financial outlook. This combination of factors led major stock benchmarks to close the week below their critical 50-day moving averages, signaling a shift in technical momentum. Market participants are now closely monitoring ETFs such as QQQ and SMH to gauge the severity of the ongoing correction in the semiconductor and AI sectors. These developments underscore growing investor sensitivity to forward-looking guidance despite the underlying growth in AI infrastructure.