The selloff in some of the riskiest AI-linked stocks eased on Thursday as buyers returned to the technology sector following a weak US open, while falling bond yields reduced pressure on highly leveraged companies, Reuters reported.
Data-centre operator CoreWeave remained in focus. Its shares fell 2% by midday after tumbling as much as 10% earlier in the session and plunging 15% on Wednesday. The company’s bonds traded at yields as high as 16%, while its credit-default swap spreads widened, underscoring concerns about rising financing costs. Wednesday’s hotter-than-expected US inflation report highlighted the risks that elevated borrowing costs posed to the capital-intensive AI sector.
