The artificial-intelligence trade is under serious pressure.

Concerns about AI debt are spooking investors. CoreWeave is the focal point of the problem, and its stock was down again after a 15% slump in the previous session as the yield on its corporate bonds surged.

Details of Anthropic’s financials have come at precisely the wrong time—pointing to slowing revenue growth and exacerbating the selloff.

Chip stocks are getting hit hard again. The iShares Semiconductor ETF is heading for an eighth straight day of losses—its longest losing streak in more than a decade. 

Encouraging signs are once again being cast aside. Chip manufacturer Taiwan Semiconductor Manufacturing reported soaring earnings, but it wasn’t enough to stop the bleeding.

Notably, bond yields are tumbling in a flight to safety. It suggests traders are more worried about the AI selloff than hot inflation. The highly leveraged AI sector is a major contributor to economic growth, and if the bond market is concerned then it’s time to sit up and take notice.

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