CoreWeave shares fall more than 9% as debt concerns weigh on AI firms
The cloud-computing company's weekly stock loss approached 23%, while its bond yield briefly exceeded 16% amid concerns over its $50 billion debt load.
Nasdaq leads stock declines as dollar approaches weekly loss
European shares rose despite U.S. technology-sector weakness, while G7 government bonds were poised for their best week since late May.
The Nasdaq Composite dropped 1.3% on October 16 as technology shares weighed on U.S. trading, while global equities slipped and the dollar weakened. Investors continued to scrutinize borrowing used to finance AI expansion after a sharp selloff in the previous session.
The S&P 500 declined 0.61%, leaving it and the Nasdaq facing losses for the week. A 0.01% gain kept the Dow Jones Industrial Average on course for a weekly advance. Utilities and consumer staples led sector gains, while technology and communication services were the biggest drags.
CoreWeave fell 9%, putting its weekly decline near 23% as scrutiny of AI infrastructure financing intensified. Stronger-than-expected U.S. inflation data had also prompted traders to raise their bets on further interest-rate increases.
The MSCI World Equity Index slipped 0.10%, although Europe's STOXX 600 advanced 0.67% and Britain's FTSE 100 added 0.38%. Most Asian markets gained. Indonesian stocks, however, recorded their steepest fall since 1998 after MSCI said the market no longer qualified for emerging-market status and planned removals from major fund-tracked indexes.
The dollar index lost 0.23%, positioning it to break a four-week winning streak as Treasury yields declined. The euro increased 0.10% to $1.1232, and the yen appreciated 0.04% to 157.92 per dollar.
The U.S. benchmark 10-year yield decreased 0.17 basis points to 5.085%. Demand for government debt amid worries over AI companies' finances left G7 government bond markets heading toward their strongest week since late May.
Brent futures gained 0.85% to $106.83 a barrel as concerns about Middle East supply persisted, putting crude on course for another weekly increase. Gold advanced 0.17% to about $4,177.14 an ounce, supported by dollar weakness.