WS #16044
The Nasdaq has suffered a 2% decline as investors rotate out of growth names, driven by a confluence of rising financing costs and cooling AI sentiment. CoreWeave's CDS distress and Anthropic's significant pre-IPO valuation cut to $1.5 trillion signal that the AI credit bubble may be deflating. Consequently, data center infrastructure stocks are trading lower on fears that elevated interest rates will slow investment in power and electrical equipment.
Tech Selloff and AI Credit Stress
The Nasdaq has suffered a 2% decline as investors rotate out of growth names, driven by a confluence of rising financing costs and cooling AI sentiment. CoreWeave's CDS distress and Anthropic's significant pre-IPO valuation cut to $1.5 trillion signal that the AI credit bubble may be deflating. Consequently, data center infrastructure stocks are trading lower on fears that elevated interest rates will slow investment in power and electrical equipment.