AI stock selloff deepens on debt and inflation worries

· Politics · United States

A global selloff in AI-linked shares deepened Thursday, with chip makers and tech investors plunging as fears over US inflation and AI debt spooked markets. CoreWeave's credit default swaps hit distress levels as investors soured on AI debt. Treasuries led a global bond rally on haven demand. The Dow rose more than 500 points as investors rotated away from the AI trade, while Asian equities were primed to rebound Friday after dip buyers powered a Wall Street recovery.

Why it matters：The selloff signals growing investor skepticism about whether AI spending will generate returns, with potential spillovers to credit markets and the broader economy.

Key points

  • AI-linked shares fell globally as chip makers and tech investors plunged
  • CoreWeave's credit default swaps hit distress levels
  • Treasuries rallied on haven demand; the Dow rose more than 500 points

Sources (original reporting)

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