Coreweave Slides 25% for the Week as AI Credit Concerns Grow | Closing Bell

Author: Bloomberg Television · Watch on YouTube

Video authored by the channel shown, not by IANIA; all rights belong to the creator. Transcript and summary generated automatically; the original-language content is preserved.

Original language: English

Original video: Coreweave Slides 25% for the Week as AI Credit Concerns Grow | Closing Bell · Channel: Bloomberg Television · 10:29 · Watch on YouTube

Topics: Markets and economy

Summary

U.S. stocks ended the week lower, with the Nasdaq 100 down more than 5.5% for the week and the semiconductor index recording an eight-day losing streak. Oil and defense stocks were among the session’s gainers, while major technology names weighed on the market. CoreWeave fell 12% on the day, bringing its weekly decline to 25%, amid rising concerns about credit risk and the cost of insuring its debt. The panel discussed whether the selloff reflects a temporary pullback or deeper doubts about AI investment, profitability and credit; guests noted that many investors’ long-term AI outlook remains intact.

Key points

The Dow fell about 0.4%, the S&P 500 about 1.1%, and both Nasdaq indices more than 2% in the session.
The Nasdaq 100 posted its biggest weekly decline since April 2025, falling more than 5.5% over the week.
The semiconductor index had its eighth consecutive losing session, its longest such streak since 2008.
Oil prices rose amid concerns about renewed strikes on energy assets and developments involving Russian diesel fuel.
Energy and utility stocks led the S&P 500’s gainers, while Alphabet and Meta were among the leading decliners.
CoreWeave shares fell 12% on the day and 25% for the week; the cost of protecting its bonds against default reached a record intraday level.
Exxon Mobil gained after reporting preliminary results that benefited from higher refining margins, while Coca-Cola reached a record after KFC announced a switch from PepsiCo.
The panel pointed to next week’s earnings from major companies as a possible influence on market sentiment.
Discussion focused on whether AI-related capital spending can deliver the expected profitability and whether credit concerns are contributing to the technology selloff.

Chapters

Start	Chapter	Summary
00:00	Markets head into the weekend lower	The hosts describe the broad market decline, weekly losses in technology stocks and a rise in oil prices amid geopolitical concerns.
02:03	Index losses and market breadth	The panel reviews declines across major indexes, an almost even split between S&P 500 gainers and losers, and extended losing streaks in semiconductors and bank stocks.
04:09	Stocks that gained and declined	The hosts discuss gains in Alcoa, Exxon Mobil and Coca-Cola before turning to CoreWeave’s sharp weekly drop and a lighthearted exchange about a flying-car video.
07:17	Bond volatility and AI credit concerns	The discussion turns to Treasury yields, bond-market volatility, the VIX and concerns about credit risk linked to AI investment.
08:22	AI profitability and the selloff’s meaning	The panel weighs upcoming earnings and the long-term AI investment outlook against questions about profitability, weaker market participants and potential risks.

Quotes

Shares fell today by 12%. It brings its weekly selloff to 25%. — 05:42

A lot of concerns, not so much just about inflation but also about some of the credit concerns around AI. — 07:50

How when does the seemingly endless flow of investment into AI stop at one play? — 08:55

Their long term thesis is intact. — 09:26

Concepts and entities

CoreWeave, Nasdaq 100, S&P 500, VIX, TSMC, ASML, ExxonMobil, Coca-Cola

Full transcript (original language)

00:00 And right now we are two minutes away from the end of the trading day. Romaine Bostick here with Christine Aquino taking you through to that closing bell with a global simulcast. We’re joined now by Carol Massar and Tim Stenbeck. Welcome to our audiences across all of our Bloomberg platforms. Television, radio. Our partnership with YouTube here. On a day where we’re seeing all of the major indices in the U.S. lower the Nasdaq 100, down about 2.5%, and the setup into the weekend for the S&P 500. The biggest gainers in the S&P 500, oil stocks and defense contractors.

00:31 Take that for what it will. Yeah, exactly. Interesting trade. I do find it still, though interesting that there’s a bit of an even split in the S&P in terms of winners and losers. But I’ve been looking at the stocks Tim this week. It is down 11%. Wow okay. The Sox down 11% this week. So giving up quite a bit of value. The Nasdaq 100 this week is down more than 5.5%. That’s just in the last five days of trading. So it sort of explains the tone of what we’ve seen in the trade of late. Yeah, absolutely. Tim. I think a lot of what’s happening as well.

01:03 Wing ressentiment is of course. The increase in oil prices today, both Brent and WTI up again more than 3.5% heading into the weekend. I mean who knows what this weekend brings in terms of geopolitical developments remain. Yeah. We should point out that a big spike that we saw mid day in a lot of those oil futures, apparently tied to some concerns right now about the re escalation of strikes on energy assets by Ukraine and a block up potential block by Congress, uh, of what at least President Trump saw as a potential

01:33 remedy with regards to the release of Russian diesel fuel. A toxic turvy weekend on a decidedly down no. A lot to talk about there. So let’s get right to it. The Dow Jones Industrial Average, the cleanest of the bunch. It’s down about 180 points, or about 4/10 of a percent. The S&P 500 is going to drop about 85 points a 1.1% on the day. Both of the Nasdaq indices the composite and the Nasdaq 100, each down more than 2%. The Nasdaq 100, down 2.5%, its biggest

02:03 weekly decline since April of 2025. And then take a look at the Russell 2000. This was supposed to be the balance. Remember it had some outperformance earlier in the week. It loses about 46 points Carol today down about 1.7%. Yeah very different tone to the trade. I was just talking with Tim and we were just talking about. I’ve had people come up to me on the train and elsewhere, family members like what’s going on in the market right now. Um, what’s interesting too, though, on this call that bragging about all the people just coming up to you on the train, like, are you Carol Massar?

02:34 I always say, I always say send complaints to Carol. But I do find it interesting. I want to know what they’re thinking, and I feel like it. It talks to sentiment. Having said that, another reader on sentiment is winners and losers in a major index like the S&P. And Christine, you’ve got 250 to the upside 253 to the downside. Absolutely Carol. Pretty evenly split actually. Energy utilities leading those gainers there. But the big problem is that all that rent in the S&P 500 very much concentrated in the biggest tech stocks.

03:06 Here we have Alphabet and Meta leading those declines here. And you know we spoke to a lot of guests today. They’re still optimistic on the air trade. We’ll find out in a few weeks if that optimism holds. Certainly not today given all this read in the tech space. But before we get to the gainers, I do just want to kind of put a finer point on the sell off, too, with the Sox. I know, Tim, we’ll get to some of this. But the Sox down to eighth straight day, the longest losing streak going back to 2008 eight. We had a headline just crossing the terminal financial stocks, the KBW Bank index uh, having its biggest, uh, its

03:37 longest, excuse me, losing streak uh, going back to 2006. And we’re getting into this sort of phase of this, uh, bull market cycle, if you will, where we’re starting to hit a lot of these superlatives, uh, oatmeal, unfortunately, superlatives to the downside. Right. And is it just a little bit of a pullback and then do we go higher or do we continue to see, um, more downward momentum. And that’s going to be the question, especially as we really kick into high gear with earnings. Um, and we got some big ones next week. I mean, consequential ones like a meta that could maybe, depending on what they say, or a Netflix or IBM.

04:09 And then of course you get Apple, Mike Belden, big hyperscalers. Uh, so maybe if they come with some positive comments to the table, maybe that shift sentiment back up positive. Totally agree with that. All right. So let’s go to some of the gainers. It was a little tough for me but did take us uh, take me to Alcoa up about 2.5% in today’s session, rolling after the company reported third quarter adjusted earnings at beat estimates, helped by higher aluminum production and prices. Keep in mind the stock is still down about 20% year to date. Yeah, energy names had to go there.

04:40 Uh, we know that they had a boost and were certainly a standout performer overall in today’s trade. But ExxonMobil up about 2.5% in the session. We did get preliminary earnings this morning. Higher refining margins added about 5.4 billion to the companies results. Analysts are expecting the company’s refining earnings to be about 7.8 billion in the third quarter, which would be the company’s highest on record. Surging profits, though, will be partly offset by lower oil prices and a $2.5 billion hit due to timing effects or derivative positions linked to cargoes.

05:12 This name, by the way, guys up 50% year to date. And then let’s just go on over to Coca-Cola Co as the ticker two point uh, 2.0. Well, 2% higher in today’s session rallying. It did hit a record in today’s session, uh, advanced following an announcement late yesterday. We talked about this, I’m sure you guys did to you from fried chicken chain KFC, which said it will transition its US beverage partnership to Coca-Cola from PepsiCo starting in January of 2027. That’s a big move. All right, a big move. Um, you had a difficult time with

05:42 gainers. Yeah, I had a difficult time finding, you know, for decliners to do. And I want to start with core. We’ve been watching it all week. Shares fell today by 12%. It brings its weekly selloff to 25%. Also, the cost of protecting bonds against default rising to the highest intraday level on record swaps priced in a more than 60% chance of default within the next five years. Core we’ve one. We’ve kept an eye on it all week, and we will continue to keep an eye on it next week as well. Uh, Tesla and SpaceX. I lumped these two together.

06:14 Did you guys see the video? Of what? The flying car. Oh, I did, it was awesome. I did see something. Yeah, it was like, okay. Christine says it’s awesome here. It seems like video of the flying car. There’s just what I want. Yeah. Okay. Look at this stuff flying yet? Is it flying now? Romance dropping. That’s different than flying. Okay. I’m so glad I chose this stuff. Okay, so really a car? I don’t know, is it? These are some existential questions like. Okay. Yeah. I mean, look, he’s not selling a car. I mean, there’s a guy anywhere a week, but but is it just me? I mean, the first thing I thought when I saw this wasn’t that.

06:45 Oh, that’s cool, because it’s, you know, look kind of ridiculous, but it was also this idea, is this him basically saying, yeah, that Berkeley guys. Right. Space X Tesla rocket company. Yeah, yeah. But. Yeah. Thanks. Not about selling cars. Thank you. You are so welcome. So let’s look at how each of these companies finished. A Tesla was higher on the day to day, but, uh, early in the session, but ended up falling today by actually more than the major indexes in the benchmarks. And also we saw shares of of space decline as well. So at least the investor reaction Ramon

07:17 at this point was a little tepid. And we should point out both of those companies are going to report earnings, uh, next week. Not that earnings really matter for a lot of investors in this company. But it’ll be interesting to see maybe if we get an announcement on what is our longer term intentions. Ah, let’s take a quick look at yields. The good news is is that, uh, that, you know, yields were contained on a weekly basis with regards to, uh, that potential, uh, that drop that we saw, I think the ten year yield down about 15 basis points on a weekly basis, although we do see a little bit movement, uh, higher, uh, on the day up, uh, by about

07:50 uh, three basis points here. But really the big story here is the volatility that we saw all week long in the bond market. At 30 basis point swing from peak to trough on that ten year yield. A lot of concerns, not so much just about inflation but also about some of the credit concerns around AI. Yeah, absolutely. And I think what’s also interesting, you know you talked about volatility. I was just pulling up the VIX. I mean we hit 20. We went actually above it today. Some people respect this index I don’t know. But it just feels like there has been a fair amount of complacency in the market for some time. And it does feel like things are maybe heating up a little bit.

08:22 We’ll see if earnings coming down or add momentum. So that’s that’s what I want to talk about. Because Ramon when you talked about some of these companies reporting earnings next week, some of the big tech companies, Netflix was also in the news because of a change at that top when it comes to its chief content officer. You you presented an idea that, well, the glass is half full. Like maybe they could come out with numbers and say, yeah, uh, change the tone of the trade. Yeah. The flip side of that is if there is some sort of pullback when it comes to CapEx and I investment or maybe free cash flow being affected as a result of

08:55 this investment and what that means for the whole narrative. Yeah, I mean, that’s really the big question, isn’t it, Tim? How when does the seemingly endless flow of investment into I stop at one play? I think it really is going to have to boil down to the profitability promise that we’ve all been given when it comes to the IE delivery process, and we’re not really necessarily seeing that at this point. But it gets to the question, though. I mean, what exactly drove the sell off this week because. Right, I mean, you heard from TSM.

09:26 Phenomenal. You’re from ASML. We’re basically backed up at least to 2028. And they’re talking maybe 2030 before they’re really going to see any sort of match in supply and demand. Uh, if you listen to investors that we brought on this show and I’m sure all the other shows on Bloomberg Television, their long term thesis is intact. We had a big land developer from Arizona on the close earlier today, also intact here. So there’s a long term story here that at least nobody seems to be abandoning. I guess the question is, was this more about core weave? And I guess some of the, um, forget my phrasing here, but some of the weaker

09:58 hands in this space rather than the eye trade. Overall. We had an author on yesterday and we talked about crises, right. And like when they occurred amid and when they finally hit like things just percolate for a while and then all of a sudden it kind of hits and then the momentum goes to the downside. So like, I just I guess we have to be smart because you go back to the GFC eve and. Right. And I mean, you think about how everybody was in, in, in and it wasn’t until things all of a sudden started to fall apart. I mean, you’ve been doing this as long as I have. You know, I think things will break and it will happen probably when people aren’t watching. And that’s just how it works.

10:29 But there’s a longer term story here, and we’re going to talk about this on all of our global simulcast for probably days to come. Yeah. But you know, this is the narrative right now. And for right now you have an S&P down, but it’s down with 2% from its record high. Ooh I’m scared. So do you want to just go buy a flying car with me then maybe instead. No I got a new job at the white House. I got to get to, uh. Well done. Not too soon.