AI Rout Sends Investors Fleeing to Bonds as CoreWeave Debt Yields 15%
SOX sits 90% above its 52-week low of $6,160.045.
Summary
The AI selloff is now driving a flight to safety in government bonds, with the 10-year Treasury yield falling 8.4 basis points to 5.105% despite hotter-than-expected CPI. The Philadelphia Semiconductor Index dropped 4.3% Wednesday, its sixth straight decline and longest losing streak since May 2025. Credit stress is emerging in AI-exposed borrowers: CoreWeave has $22 billion of bonds and $26 billion of loans outstanding, with its bonds yielding 15%, and its stock fell nearly 6% in after-hours trading. BlackRock downgraded US stocks to neutral and upgraded Treasuries, citing AI volatility. The KOSPI sank 8% for its seventh straight decline.
At the time of this announcement, SOX was trading at $11,684.38 on NASDAQ in the Technology sector. The 52-week trading range was $6,160.04 to $14,655.29. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Reuters.