$80 Billion AI Stock Selloff Follows Hot CPI

U.S. inflation remains about a percentage point above the Federal Reserve’s 2% target, and the latest report showed broad price increases, including the largest monthly gains in core goods and services in some time. The figures initially pushed Treasury yields and the dollar higher, but markets reversed as investors focused on financing risks in the capital-intensive AI boom. CoreWeave, Nebius, Oracle and Dell fell sharply, erasing roughly $80 billion in combined market value, amid concerns that higher borrowing costs could pressure heavily indebted companies and that some AI firms may not deliver expected earnings or revenue. CoreWeave’s borrowing costs have risen notably, with a bond issued at a 9.625% yield recently trading at a 15% yield; its CEO nevertheless said he remained confident in the company. Investors remain more positive about profitable AI leaders, while the inflation outlook leaves the Federal Reserve facing continued pressure to keep rates restrictive.