CoreWeave shares slid 15% on Wednesday, the sharpest move of the day, as the yield on its 9.625% bond due 2032 spiked to 15% and the 9.75% bond due 2031 rose to 14.9%.
Credit‑default swaps for CoreWeave now price a more than 50% probability of default within the next five years, while the yield on its 6.25% bond due 2032 jumped to 7.24%.
Oracle Corp. followed suit, its shares falling 9% as its 6.25% bond yield climbed to 7.24%. Other AI‑hardware names also suffered: Nvidia dropped 3.2%, AMD 5.7%, Intel 4.5%, HPE 8.2%, Dell 11.3%, Micron 4%, and Western Digital 4.5%.
The sell‑off rippled through the broader market – the Nasdaq Composite and Nasdaq 100 fell 2% each, the S&P 500 slipped 1%, and the Russell 2000 entered a technical correction after falling 10% from its August peak. A September CPI print of 3.7% YoY and a core CPI of 2.6% nudged the market toward a potential 25‑basis‑point Fed rate hike.
Going forward, investors will keep a close eye on debt refinancing plans, AI‑infrastructure demand, and the upcoming results of semiconductor players like TSMC. Market volatility is likely to persist as the sector weighs rising borrowing costs against the still‑strong AI‑related revenue streams.