Asian Stocks Rise, US Futures Gain After Warsh: Markets Wrap - SWI swissinfo.ch
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(Bloomberg) — Another burst of selling in technology companies rattled Wall Street, dragging down stocks as investors questioned the outlook for the artificial-intelligence trade. Not since 2008 had chipmakers seen an eighth straight day of losses. This time, worries over whether the AI infrastructure buildout has outrun the ability of firms to get a return on their investments have rattled trading. CoreWeave Inc., a cloud-computing services provider whose bonds recently hit levels that typically signal distress, sank 14%. The Nasdaq 100 fell 2.5%. Brent oil climbed to around $110 as a group of US lawmakers introduced a bill to block President Donald Trump’s deal to release more Russian diesel into global markets. Higher energy costs fueled worries about inflation, dragging down bonds. While angst around funding AI has been building for months, CoreWeave has drawn outsized attention for being an early entrant in the business that has been heavily reliant on high-yield debt markets to finance its buildout. With bond yields elevated and inflation remaining stubbornly high, the cost of that financing is rising fast.
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