Key Takeaways
- • The S&P 500 fell 0.3% and was on track for its sixth loss in seven days since setting an all-time high, as AI stocks dragged the Nasdaq composite down 0.9% (according to the Associated Press).
- • Investor worries about rising debt loads and high bond yields fueled the AI sell-off, with the 10-year Treasury yield at 5.06%, down from 5.19%, after touching its highest level since 2002 earlier in the month.
- • CoreWeave fell 7.8% a day after tumbling 15.5%, with $4.41 billion in debt principal due in the second half of 2026 and $6.18 billion due in 2027 against more than $5.5 billion in cash as of June 30.
- • Taiwan Semiconductor's stronger-than-expected quarterly profit and expected strong demand into late 2026 failed to lift AI shares, as its U.S.-listed stock fell 4.6%.
- • South Korea's Kospi fell 7.6% and Japan's Nikkei 225 fell 4.9% as the sell-off spread overseas; the Kospi has dropped 39% since its June record.
Summary
Artificial-intelligence stocks sold off again on Thursday, pulling Wall Street lower after the selling whipped through Asian markets. The S&P 500 fell 0.3% and was on track for its sixth loss in seven sessions since its all-time high, while the Nasdaq composite dropped 0.9%. Most other U.S. stocks were rising, and the Dow Jones Industrial Average gained 291 points, or 0.6%, in morning trading, according to the Associated Press. Because AI companies have grown so large in market value, their moves weigh heavily on the index and often overshadow the broader market.
The sell-off reflects growing concern over how long the AI spending boom can continue. Companies have poured money into data centers and AI chips, and many have borrowed heavily to fund that buildout. With bond yields worldwide at their highest levels in years, investors are questioning how resilient that spending can be, and high yields generally make investors less willing to pay premium prices for stocks. CoreWeave, which provides AI computing power over the cloud, has been among the hardest hit. It reported $4.41 billion in principal payments due over the second half of 2026 and another $6.18 billion in 2027.
Nvidia fell 2.6% and was the heaviest drag on the S&P 500, though it had gained nearly 1,415% since the end of 2022. Taiwan Semiconductor Manufacturing Co. reported quarterly profit above analysts' high expectations, and CFO Wendell Huang said it expects strong demand to continue through the final three months of 2026, yet its U.S.-listed shares still fell 4.6%. A day earlier, ASML CEO Christophe Fouquet said some customers were discussing orders stretching to 2029 or 2030, but that news also failed to lift the group.
Outside AI, equities were more resilient. Marsh & McLennan jumped 6.1% after reporting higher-than-expected profit and revenue for the latest quarter. Two of every three S&P 500 stocks rose. Treasury yields fell, with the 10-year yield dropping to 5.06% from 5.19%, even as a report showed U.S. inflation running hotter than economists expected and another showed retail sales and jobless claims stronger than forecast.
Abroad, South Korea's Kospi, dominated by Samsung Electronics and SK Hynix, suffered its worst day since July, falling 7.6%. Japan's Nikkei 225 dropped 4.9%. The Kospi has fallen 39% since setting a record in June.
The sell-off reflects growing concern over how long the AI spending boom can continue. Companies have poured money into data centers and AI chips, and many have borrowed heavily to fund that buildout. With bond yields worldwide at their highest levels in years, investors are questioning how resilient that spending can be, and high yields generally make investors less willing to pay premium prices for stocks. CoreWeave, which provides AI computing power over the cloud, has been among the hardest hit. It reported $4.41 billion in principal payments due over the second half of 2026 and another $6.18 billion in 2027.
Nvidia fell 2.6% and was the heaviest drag on the S&P 500, though it had gained nearly 1,415% since the end of 2022. Taiwan Semiconductor Manufacturing Co. reported quarterly profit above analysts' high expectations, and CFO Wendell Huang said it expects strong demand to continue through the final three months of 2026, yet its U.S.-listed shares still fell 4.6%. A day earlier, ASML CEO Christophe Fouquet said some customers were discussing orders stretching to 2029 or 2030, but that news also failed to lift the group.
Outside AI, equities were more resilient. Marsh & McLennan jumped 6.1% after reporting higher-than-expected profit and revenue for the latest quarter. Two of every three S&P 500 stocks rose. Treasury yields fell, with the 10-year yield dropping to 5.06% from 5.19%, even as a report showed U.S. inflation running hotter than economists expected and another showed retail sales and jobless claims stronger than forecast.
Abroad, South Korea's Kospi, dominated by Samsung Electronics and SK Hynix, suffered its worst day since July, falling 7.6%. Japan's Nikkei 225 dropped 4.9%. The Kospi has fallen 39% since setting a record in June.
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