AI stock selloff keeps markets jittery as CoreWeave debt worries spread
Tech shares sank last week, then bounced Monday before slipping again Tuesday. Investors are weighing whether the rally in artificial intelligence stocks can resume.
By Standard Topic. AI-generated from the reporting listed under Coverage. Published . Updated .
What happened
AI-linked tech stocks fell sharply last week, with worries over CoreWeave's roughly $35 billion in debt rattling its stock and bonds. Stocks rebounded Monday as investors bought back into the AI trade. On Tuesday, J.P. Morgan estimated that most global banks have limited exposure to CoreWeave, but chipmakers fell again and the rebound stalled.
Why it matters
The reports frame the coming week of tech earnings as a test of whether the stock-market rally has more room to run.
Timeline
- Last week: CoreWeave's stock and bonds slumped on investor worries over its debt financing, and tech stocks sold off on Friday.
- Oct 20, 3:30 AM ET: J.P. Morgan estimated that most global banks have limited exposure to CoreWeave, the Nvidia-backed cloud company.
- Oct 20, 9:41 AM ET: Nasdaq opened lower as the AI sell-off resumed, with Micron Technology, Intel and Sandisk each falling around 2%.
Coverage
- The stock market is mixed; tech trade struggles to stay out of red territory (TradingView)
- Wall Street is mixed as more drops for AI stocks offset some strong profit reports (post-gazette.com)
- US Stock Market Today: Nasdaq Opens Lower As AI Sell-Off Resumes, Dow Up Despite Crude Jitters (ndtvprofit.com)
- Jim Cramer's top 10 things to watch in the stock market Tuesday (CNBC)
- Tech stocks rebound as AI selloff fears persist on Wall Street
- AI stocks rebound on Monday after last week's sharp selloff
- Tech stocks rebound as AI shares rally ahead of earnings week
- Tech stocks rebound on Monday after Friday's AI-driven selloff
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