AI Debt Fears Rattle Wall Street as Tech Stocks Tumble Again

Technology shares come under pressure

Financial markets declined Friday as investors sold technology shares amid concerns that companies linked to artificial intelligence may be faltering. The pressure on chipmakers and other technology firms had built through the week.

Investors are focused on borrowing connected to AI and the rapid expansion of data centers needed to power AI models. CoreWeave shares lost nearly 12% Friday and roughly 24% over the week as attention turned to its growing debt. Micron Technology fell 5.6%, Advanced Micro Devices declined 6%, Broadcom was down 4.5%, and Intel lost 5.8%.

Anthropic valuation draws attention

Friday’s decline also reflected questions about whether Anthropic can keep its revenue momentum, according to Crisafulli’s note to investors. The AI company is expected to go public soon. Reuters reported Thursday that Anthropic investors are considering a valuation of $1.5 trillion, below the initial target of $2 trillion.

Bond yields and Fed policy

The yield on 10-year U.S. Treasury bonds remained at 5.1% Friday. The benchmark influences rates for mortgages, credit cards and other loans. Earlier this month, yields rose to their highest point in more than two decades amid concerns about inflation and growing U.S. government debt.

Warsh makes no policy signal

Federal Reserve Chairman Kevin Warsh gave no indication of possible interest rate moves Friday while attending a gathering of financial leaders in Bangkok. At its last meeting in September, the Fed raised rates, putting the federal funds rate in a range of 3.75% to 4%. The article describes that as the highest level since December 2025.