AI Stocks Drop After Hot Inflation Report Fuels Bets for Rate Hikes
CoreWeave, Nebius and Oracle led declines as higher yields raised borrowing concerns and wiped about $80 billion from AI-related market value, Reuters said.
- Technology stocks dropped on Wednesday following a hotter-than-expected inflation report, with the S&P 500 falling 1.11% and the Nasdaq Composite falling 1.88%, marking their worst day since July.
- Rising inflation and bond yields have increased borrowing costs for the capital-intensive AI sector, bolstering the case for the Federal Reserve to raise interest rates to combat price pressures.
- Declines erased $80 billion in market value, with data center operator CoreWeave plunging 15.5% on Wednesday as its bond yields reached 15%; Dell Technologies fell 11% and Oracle dropped 9%.
- Jed Ellerbroek, portfolio manager at Argent Capital Management, noted that while major hyperscalers remain profitable, investors are increasingly skeptical about the AI buildout, with analysts warning expectations are "priced to perfection."
- Chinese semiconductor company CXMT announced progress on advanced memory chips, stoking competition concerns for US and South Korean manufacturers already struggling with high interest rates and elevated borrowing costs.
14 Articles
14 Articles
US consumer prices are growing, even more so than predicted. Wall Street's concern for an early rise in interest rates is growing. The prospect of rising credit costs is especially not good for AI values.
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Red-Hot US Inflation Report Triggers Sell-Off in AI Stocks
Major artificial intelligence stocks tumbled on Wednesday after a hotter-than-expected US inflation report raised concerns that higher interest rates could increase borrowing costs for companies ... The post Red-Hot US Inflation Report Triggers Sell-Off in AI Stocks first appeared on [your]NEWS.
The Economic Times
Times of IndiaUS stocks: Nasdaq ends sharply lower as hot inflation data stirs rate-hike worries
US inflation data for September shows an unexpected rise due to increased gasoline costs and broader price pressures. As a result, the Nasdaq index closed sharply lower, influenced by concerns over potential interest rate hikes. Major AI-related stocks, including Oracle and CoreWeave, experienced significant declines following the inflation report. In financial news, Bank of America reported a decrease in profits due to regulatory costs.
kioncentralcoast.com
AI stocks drop after hot inflation report bolsters bets for Fed rate hikes
By John Towfighi, CNN New York (CNN) — High-flying technology stocks are taking a bruising this week, as investors grow more skeptical about whether the AI boom will live up to expectations. Stocks dropped on Wednesday, led by declines in the tech sector, after a hotter-than-expected inflation report bolstered bets that the Federal Reserve will
AI stocks drop after hot inflation report fuels bets for rate hikes
By John Towfighi, CNN New York (CNN) — High-flying technology stocks are taking a bruising this week, as investors grow more skeptical about whether the AI boom will live up to expectations.Stocks dropped on Wednesday, led by declines in the tech sector, after a hotter-than-expected inflation report. The S&P 500 fell 1.11% and the Nasdaq
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