Good afternoon and welcome to Markets Desk.
Inflation came in hot and markets felt it immediately. Chip stocks led the selloff as investors grew anxious about the intersection of persistent price pressures and mounting AI-related debt. The flight to safety was swift, with Treasuries drawing fresh demand as equities retreated across the board.
That anxiety is showing up in credit markets too. CoreWeave's bonds, issued just six months ago, have fallen to eighty-one cents on the dollar and are now yielding more than fifteen percent. That kind of distress in a high-profile AI debt instrument is raising serious questions about whether the market has been pricing AI exposure too aggressively, and the ripple effects are being watched closely.
Meanwhile, Bank of America added to the day's pressure. The bank missed on both revenue and earnings, sending shares lower and reminding investors that even the biggest institutions aren't immune to a consumer that's tightening up. The results landed at an already fragile moment for sentiment, and the market didn't give the benefit of the doubt.
That's the tape. Markets Desk, signing off the floor.
