Wall Street warns that U.S. stocks could fall further 4.7%, as CoreWeave's plunge continues to trigger AI credit concerns

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BlockBeats reports that,October 26, according to Bloomberg,AI the sharp decline in the share price of the cloud computing company is spreading to technology stocks and even the broader U.S. stock market. Since October 6 the major U.S. stock indexes hit new highs, CoreWeave's share price has fallen 41%, while Iren and Nebius have fallen 40%and 36%.

The market is concerned that AI infrastructure companies rely heavily on debt financing and may increase borrowing further after reporting their earnings. As U.S. Treasury yields rise and inflation persists, the financing costs of these companies continue to increase, while the credit risk indicators for some large technology companies'AI investment have also reached new highs.

Wells Fargo Chief Equity Strategist Ohsung Kwon warned that if new cloud computing companies cut capital expenditures due to financing pressure, the semiconductor industry will face a major shock. The Philadelphia Semiconductor Index October has fallen 15%to date.

Brian Reynolds, Chief Market Strategist at Reynolds Strategy, said that the sell-off is evolving from an isolated corporate event into a macro risk, and expects the S&P 500 Index could fall back to the June early low, declining a further approximately 4.7%from Friday's closing level. Meanwhile, concerns about the AI bubble and defaults on high-risk debt continue to intensify.

Original link https://m.theblockbeats.info/flash/373734

Key points

Since October 6 the major U.S. stock indexes hit new highs, CoreWeave's share price has fallen 41%。
During the same period, Iren and Nebius have fallen 40%and 36%。
The Philadelphia Semiconductor Index October has fallen to date 15%。
Brian Reynolds expects the S&P 500 Index to fall a further approximately 4.7%。

AI-assisted interpretation

The following is analysis, separate from reported facts. Verify important claims independently.

The report states that AI infrastructure companies rely on debt financing; rising U.S. Treasury yields and persistent inflation may increase financing costs. The market is concerned that after companies cut capital expenditures, the semiconductor industry and the broader U.S. stock market could come under pressure.

Why it matters to readers

This indicates that AI the share prices, financing costs, capital expenditures, and technology-stock risks of infrastructure companies may affect one another.

A decline in share prices does not necessarily mean that prices will continue to fall; the 4.7%in the article is a strategist's forecast, not an achieved result.

Risks and unknowns

The information is reportedly a second-hand account attributed to Bloomberg and requires verification against the original report.
The S&P 500 Index falling a further approximately 4.7%is a forecast and has not yet occurred.
It remains uncertain whether the companies concerned will cut capital expenditures and whether debt defaults will occur.

Wall Street warns that U.S. stocks could fall further 4.7%, as CoreWeave's plunge continues to trigger AI credit concerns

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