Key facts
- CoreWeave bonds sold off sharply, pushing yields above 15%.
- Broadcom shares fell, contributing to an eighth consecutive day of losses for the PHLX chip index.
- Oil prices jumped more than 3% due to Middle East supply worries.
- Anthropic investors are weighing a lower valuation for the company's upcoming IPO.
Wall Street indices closed sharply lower on Friday, with AI-related technology stocks facing renewed selling pressure amid concerns about inflation and rising interest rates. The Nasdaq Composite was particularly hard-hit as investors worried about the ability of debt-laden AI infrastructure companies to repay their obligations. CoreWeave, an Nvidia-backed data center operator, saw its bonds sell off significantly, pushing yields above 15%. Broadcom also declined, contributing to an eighth consecutive day of losses for the PHLX chip index. Rising oil prices, driven by Middle East supply concerns, further spooked traders. Federal Reserve Chair Kevin Warsh expressed optimism about U.S. economic strength despite ongoing inflation and tighter monetary policy. Markets are increasingly anticipating the Federal Reserve will hold interest rates steady this month, though Barclays forecasts 25-basis-point hikes in December and January.