The 2 O'Clock: Nasdaq Caps Its Worst Week Since June, Fires Force Evacuations in Southern California, and Trudy Weakens

LOS ANGELES — It is 2 p.m. on the West Coast, and Friday turned on two fronts at once: the bill for the AI boom came due on Wall Street, and Santa Ana winds turned Southern California into a fire watch with evacuations in Orange County and above Malibu. Add a hurricane that fooled the morning models, a foldable iPhone, and an NFL starting quarterback ruled out — here is what happened since this morning.

1. Nasdaq falls 2.14% to close its worst week since June as AI debt fears spread

The selloff that was building at midday hardened into the close. CNN reported the Nasdaq Composite fell 2.14% on Friday, bringing its weekly loss to roughly 4.5% — its worst week since June — while the S&P 500 fell 1.09%. At the center of the anxiety are the so-called neoclouds, above all Nvidia-backed CoreWeave, whose shares dropped almost 12% Friday and about a quarter of their value this week as its bond yields surged to distress levels.

Why it matters: the indexes set record highs just 10 days ago, and investors are now questioning whether debt-funded data-center spending can pay for itself. What is next: Magnificent Seven earnings begin next week, with Meta and Tesla first up, and AI spending will be the first question on every call. Previously covered the midday slide here and CoreWeave's bond selloff here.

2. Southern California fires force evacuations as Santa Ana winds drive red-flag danger

A new fire broke out late Friday morning in Orange County and grew fast. The Norte Fire, reported just after 11:30 a.m. near San Clemente, reached 250 acres by early afternoon, with evacuation orders in zones covering parts of San Juan Capistrano and San Clemente and shelters open in both cities, the Orange County Fire Authority said. In an update just before 2:30 p.m., officials said four homes off Via La Mirada in San Juan Capistrano had been impacted.

North of Malibu, the Bryson Fire held at about 147 acres and 17% containment in Friday's update, with the Getty Villa closed, evacuation orders in place, one firefighter treated for minor injuries, and thousands of structures threatened. Santa Ana gusts of 40 to 65 mph and red-flag warnings run through Saturday, and utilities have shut off power to tens of thousands of Southern California customers to cut ignition risk. What is next: both fires face the worst wind window Friday night into Saturday. Previously is tracking the Norte Fire in a standalone story, updated as officials release new figures.

3. Hurricane Trudy weakens from Category 3 to Category 1 off Mexico's Pacific coast

Trudy fooled the morning models. After strengthening to a Category 3 with 120 mph winds early Friday, the storm weakened by Friday afternoon to a Category 1 with maximum sustained winds near 85 mph, the National Hurricane Center said, after satellite data and an Air Force Reserve Hurricane Hunter flight found it weaker than first indicated, according to the Associated Press. It sat about 225 miles southwest of Acapulco, moving northwest at about 5 mph.

A hurricane warning is in effect from Manzanillo, Colima, northward to Playa Perula, Jalisco. Forecasters still expect Trudy's center to approach the coast of southwestern and west-central Mexico on Saturday and pass near the coast Saturday night into Sunday, with some re-strengthening possible before then. Previously tracked Trudy's Category 3 peak here.

4. SoftBank weighs an $18 billion acquisition of Allied Universal

SoftBank is considering an acquisition of U.S. security firm Allied Universal that could value the company at about $18 billion, Bloomberg reported via Reuters on Friday. The talks are preliminary and no final decision has been made.

Why it matters: it would be one of the year's largest services deals and another sign of SoftBank's appetite for big, cash-generating U.S. assets. What is next: watch for either side to confirm talks — until then, this stays in the rumor column. Previously reported the story here.

5. iPhone Duo pre-orders open: Apple's first foldable starts at $1,999

Apple's long-awaited entry into foldables is real. The iPhone Duo — a 5.4-inch phone that unfolds to 7.6 inches — went on sale at 5 a.m. PT Friday in the U.S. and more than 70 countries, starting at $1,999, with shipments set for October 23.

Why it matters: Apple is years late to foldables, and its first attempt will test whether the format is a niche or the next default shape of a phone. What is next: first delivery-day demand signals and reviews land next week. Previously covered the launch here.

6. Netflix's content shake-up lands: Peter Rice in, Bela Bajaria out

Netflix confirmed that chief content officer Bela Bajaria is leaving after nearly 10 years, with former Walt Disney Television chairman Peter Rice taking over content on October 26, Bloomberg and Reuters reported. The move came one day after Netflix cut roughly 1,000 jobs — about 6% of its workforce — in its biggest layoffs since 2022.

Why it matters: Rice ran television portfolios at Fox and Disney that included some of the biggest hits of the last two decades, and Netflix is betting his talent relationships can restart its search for must-watch hits. Previously reported the shake-up here.

7. Jalen Hurts ruled out with a blood clot; Tanner McKee starts for the Eagles on Sunday

The Eagles ruled Hurts out for Sunday after a follow-up ultrasound showed movement in a superficial blood clot in his calf. Backup Tanner McKee makes his third career start for a 2-3 Philadelphia team on a three-game skid, hosting a rested 2-2 Panthers team that oddsmakers now favor on the road.

The Eagles have also signed quarterback Joe Milton off the Cowboys' practice squad for depth. Why it matters: a winnable home game just became a backup-quarterback game, in a division race that is not waiting for Philadelphia to heal. Previously covered the ruling here.

8. Games: Activision says GTA 6 and Modern Warfare 4 are 2026's two biggest games

Activision chief marketing officer Tyler Bahl told The Game Business that GTA 6 and Modern Warfare 4 are 2026's two biggest games — and argued GTA 6 helps Call of Duty by pulling lapsed players back to consoles. The calendar is now set: Modern Warfare 4 is out October 23, Zelda follows November 5, and GTA 6 lands November 19.

Why it matters: rival publishers usually flee GTA's launch window. Activision is publicly leaning into it. Previously covered Bahl's comments here.

Still developing this afternoon

ALCS Game 4 tonight in Cleveland

The Guardians lead the Rays 2-1 and can move within one win of the World Series tonight at Progressive Field (8 p.m. ET, TBS/truTV/HBO Max). Tampa Bay starts Nick Martinez; Cleveland counters with reliever Shawn Armstrong as an opener. Milwaukee, which swept the Dodgers, is already waiting in the World Series. Previously previewed the matchup here.

NBA preseason ends tonight with 12 finales

Twelve games close the preseason Friday, capped by Nuggets-Lakers on ESPN at 10:30 p.m. ET. It is the last audition night before Monday's roster deadline and Tuesday's regular-season opener. Previously set the night up here.

Formula 1 in Austin: Antonelli can clinch the title

Andrea Kimi Antonelli arrives at Circuit of the Americas with 340 points and a 102-point lead. Win on Sunday with the right help from his teammate and Lewis Hamilton, and the 20-year-old becomes Formula 1's youngest champion. Previously did the math here.