At the heart of the sell-off are the higher-than-expected US inflation figures. Concerns that persistent inflation could push the Federal Reserve to keep interest rates high for longer or consider another rate hike have accelerated the exit from companies priced with high growth expectations.
The S&P 500 fell 1.1%, its sharpest daily loss since July 29. The technology-heavy Nasdaq Composite declined 1.9%. AI data center operator CoreWeave dropped 16%, Nebius 11%, and Oracle 9%.
Many Bitcoin mining companies have recently begun leasing their energy infrastructure to AI and high-performance computing clients. While this transformation creates new revenue streams, it also makes companies more vulnerable to valuation fluctuations in the technology and AI sectors.
Daily declines alone do not determine the long-term performance of companies. However, investors are now paying more attention not only to large AI contracts but also to the financing costs, delivery schedules, and profitability of these projects.
*This is not investment advice.