Tech selloff deepens as CoreWeave’s debt worries spread, and a hot US inflation reading rattles Asia
Reuters reported that Asian markets sold off after hot US consumer-price data and that Nasdaq futures dropped about 1% as the AI rout deepened on debt concerns; its Wednesday wrap described a tech melt. Reuters later said US chip stocks were set to lose about $2 trillion, and that CoreWeave shares and bonds fell further. Bloomberg reported on Thursday that stocks fell and yields plunged as CoreWeave worries weighed on tech. Reuters also reported that the US dollar pulled back from an 18-month high as Fed officials tempered bets on rate rises, and that Daly said hikes are likely needed but not urgently. Closing index levels are not confirmed from two sources and are not quoted.
AI spending has driven much of the market’s gains. If lenders balk at funding data-centre builders such as CoreWeave, the cost of that spending rises, and the doubts spread to the suppliers and customers that depend on it.
If you have KiwiSaver in a growth fund, a share of it is likely invested in global tech and will move with this. Over many years short sell-offs matter less than fees and time in the market, but check your fund’s settings if you are close to retiring.
Optimists say the demand for AI is real and that sell-offs are a chance to buy.
Sceptics say heavy borrowing for data centres resembles earlier booms that ended badly.
Treat one day of falls as a signal, not a verdict. What to watch: Thursday’s US session, credit spreads on AI-related debt and any move by the US Treasury on bond yields.
DailyDrop New Zealand edition No. 12 · Morning · FRI., OCT. 16, 2026