Tech Selloff Deepens as AI Financing Concerns Weigh on Stocks — US Market Wrap
US stocks declined sharply as another wave of selling in technology shares intensified concerns about the sustainability of the artificial-intelligence investment boom. Semiconductor stocks extended their losing streak to eight consecutive sessions, their longest decline since 2008, as investors questioned whether the massive expansion of AI infrastructure will generate sufficient returns. The Nasdaq 100 fell 2.5%, while cloud-computing provider CoreWeave sank 12% amid growing concerns over its financial stability after its bonds recently traded at levels associated with distressed debt. Brent crude settled around $110 a barrel after a group of US lawmakers introduced legislation aimed at blocking President Donald Trump’s agreement with Moscow to release Russian diesel into global markets. Elevated energy costs added to inflation concerns, putting further pressure on Treasury bonds. CoreWeave has become a particular focus of investor anxiety because of its heavy reliance on high-yield debt markets to finance AI infrastructure expansion. With Treasury yields remaining elevated and inflation proving persistent, rising borrowing costs are increasing concerns about the financial sustai
US stocks declined sharply as another wave of selling in technology shares intensified concerns about the sustainability of the artificial-intelligence investment boom. Semiconductor stocks extended their losing streak to eight consecutive sessions, their longest decline since 2008, as investors questioned whether the massive expansion of AI infrastructure will generate sufficient returns. The Nasdaq 100 fell 2.5%, while cloud-computing provider CoreWeave sank 12% amid growing concerns over its financial stability after its bonds recently traded at levels associated with distressed debt.
Brent crude settled around $110 a barrel after a group of US lawmakers introduced legislation aimed at blocking President Donald Trump’s agreement with Moscow to release Russian diesel into global markets. Elevated energy costs added to inflation concerns, putting further pressure on Treasury bonds. CoreWeave has become a particular focus of investor anxiety because of its heavy reliance on high-yield debt markets to finance AI infrastructure expansion. With Treasury yields remaining elevated and inflation proving persistent, rising borrowing costs are increasing concerns about the financial sustainability of such investments.