Red hot CPI report fuels AI rout
- CoreWeave, Nebius, Oracle, Dell got pantsed in a single session to the tune of $80 billion.
- The 30-year Treasury yield flirted with 5.63%, making yesterday's cheap money look like a bad hangover.
- CoreWeave's June bonds now yield 15%, which is either a bargain or a tombstone, depending on your actuary.
- Barclays finally noticed Dell stock quadrupled and slammed the downgrade button, because gravity still exists.
- CEO Mike Intrator calls the market 'irrational,' which is rich coming from a company borrowing at loan-shark rates.
Brief Summary
Wall Street's favorite money-losing fairy tale hit a pothole on Wednesday as a red-hot CPI report sent AI and infrastructure stocks into a tailspin, erasing $80 billion faster than a VC can say 'synergy.' Data center darling CoreWeave crashed 16%, Oracle and Dell tumbled, and the whole sector got a sobering reminder that interest rates are the kryptonite to their 'build it and they will come' business model.
Why This Matters
This isn't just a bad day on the trading floor; it's a warning shot across the bow of the entire 'AI will fix everything' narrative. If you own a 401(k) with any tech heavyweights—or have ever clicked 'buy' on a stock—you're exposed to the fallout. The market is finally asking the question no one wanted to: can these AI behemoths actually make money when borrowing costs are this brutal?