# Tech Stocks Drag Wall Street Lower as Nasdaq Drops 2.1 Percent

- URL: https://stocks.freetheai.org/news/tech-stocks-drag-wall-street-lower-as-nasdaq-drops-2-1-percent-a10460
- Published: 2026-10-16T20:03:34Z
- Category: markets; sentiment: bearish; impact: high
- Symbols: [NASDAQ:CRWV](https://stocks.freetheai.org/symbols/NASDAQ-CRWV), [NASDAQ:FANG](https://stocks.freetheai.org/symbols/NASDAQ-FANG), [MARKET:US10Y](https://stocks.freetheai.org/symbols/MARKET-US10Y), [MARKET:US02Y](https://stocks.freetheai.org/symbols/MARKET-US02Y), [MARKET:US30Y](https://stocks.freetheai.org/symbols/MARKET-US30Y), [NYSE:COMP](https://stocks.freetheai.org/symbols/NYSE-COMP)
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Major U.S. stock indices closed lower on Friday as technology shares faced continued selling pressure. The tech-heavy Nasdaq Composite fell 2.1%, while the benchmark S&P 500 declined 1.1% and the Dow Jones Industrial Average lost 0.3%. Despite the market downturn, six of the eleven sectors ended in the green, led by energy.

A pullback in artificial intelligence and memory chip stocks drove the day's losses. Cloud infrastructure firm CoreWeave, Inc. (NASDAQ:CRWV) dropped 11.9%, while energy company Diamondback Energy, Inc. (NASDAQ:FANG) gained 4.2%. Meanwhile, economic data showed U.S. industrial production rose 0.7% in September, beating expectations, and the 10-year Treasury yield finished at 5.08%.

Investors are watching whether high-tech valuations can find support after recent declines or if sustained higher Treasury yields will keep pressure on equities in the coming sessions.

## Key points

- The Nasdaq Composite dropped 2.1%, the S&P 500 lost 1.1%, and the Dow Jones Industrial Average fell 0.3%.
- Six of eleven market sectors finished higher, with energy stocks leading the market.
- CoreWeave, Inc. (NASDAQ:CRWV) declined 11.9% amid an ongoing pullback in artificial intelligence shares.
- Diamondback Energy, Inc. (NASDAQ:FANG) rose 4.2% as energy shares outperformed.
- U.S. industrial production grew 0.7% month-over-month in September, surpassing the 0.4% forecast.

## Questions and answers

### Why did the stock market fall on Friday?

The stock market fell primarily due to a selloff in technology and artificial intelligence stocks, which weighed on broader indices despite gains in six out of eleven sectors.

### How did major U.S. stock indices perform?

The Nasdaq Composite dropped 2.1%, the benchmark S&P 500 finished down 1.1%, and the Dow Jones Industrial Average closed 0.3% lower.

### What was the U.S. industrial production growth in September?

U.S. industrial production increased by 0.7% month-over-month in September, exceeding the forecasted 0.4% growth rate.