Hot CPI report triggers $80 billion AI stock selloff

Major AI stocks slumped Wednesday after a hot US inflation report, erasing about $80 billion in market value as investors worried about rising borrowing costs in the capital-intensive sector. CoreWeave fell 16%, Nebius dropped 11%, Dell Technologies declined 11%, and Oracle lost 9%. Barclays downgraded Dell, noting its shares have quadrupled this year, while CoreWeave's bond yields surged from 9.625% to 15% amid its $48 billion in debt. The selloff pushed the 30-year Treasury yield above 5.6% before a sharp afternoon pullback. Analysts said higher rates threaten less-profitable firms, though major players like Nvidia and hyperscalers remain profitable, with investors cautious following the dot-com bust.