Freedom: Nasdaq rebound does not eliminate the risk of new sell-offs

The recovery of tech stocks after a statement by Nvidia’s CEO eased market tensions; however, fresh negative news could again trigger sell-offs, says Freedom Broker lead analyst Natalia Milchakova. In her view, investors remain sensitive to the debt burden of AI companies and to prospects for interest-rate hikes in the U.S.

CoreWeave (CRWV) was in the spotlight. The company provides computing capacity for training and running artificial intelligence models. It uses Nvidia equipment and attracts significant funding to expand its infrastructure.

Nasdaq recouped intraday losses

At the close of trading on October 15, the Nasdaq Composite added 0.08%, although during the session it was down as much as 1.4%. As reported by Dow Jones Market Data, this was the strongest reversal of the index from an intraday decline into positive territory since April 7.

CoreWeave shares ended the day up 5.9%, recovering from a 9.5% drop during the session.

This reversal does not mean that the Nasdaq made up for the previous session’s losses. Milchakova notes that after the index fell by about 1.9% on Wednesday, Thursday’s gain was still modest.

Nvidia’s statement calmed CoreWeave investors

One factor weighing on the tech sector was concern about CoreWeave’s ability to service its debt. Investors are assessing how resilient the model of large-scale AI infrastructure buildout financed by borrowing will prove to be.

Nvidia (NVDA) CEO Jensen Huang said that CoreWeave’s financial position is strengthening. At the same time, he saw no need for Nvidia to provide the company with financial guarantees. These comments helped ease investor anxiety.

According to Milchakova, support from a key technology partner helped improve sentiment. However, the positive reaction to the statement in itself does not remove questions about the debt load and the cost of further business expansion.

Rates and macroeconomic data remain important

Milchakova believes that amid the deterioration of certain U.S. macroeconomic indicators and expectations of rate hikes, tech stocks remain vulnerable.

New negativity regarding the financial position of AI companies could again prompt selling in the sector. In such a scenario, the analyst allows for a flow of some capital out of equities into U.S. government bonds and the dollar.

Therefore, a one-session recovery is still not enough to conclude that sentiment has improved sustainably. For the market, what matters is the further trajectory of borrowing costs and companies’ ability to finance investments without an excessive increase in debt burden.

CoreWeave’s debt risks remain in focus

Earlier, Freedom Broker reported on the sale by CoreWeave’s founders of $3.3 billion in shares after the IPO. According to Bloomberg data cited in the publication, in 2026 alone the three co-founders sold $2.4 billion worth of shares.

The sales took place against a backdrop of rising credit risks and investors’ cautious attitude toward artificial intelligence spending. The article also noted that CoreWeave shares had fallen more than 60% from their peak.

Not an individual investment recommendation.