US stocks: AI shares tumble up to 16%, erasing $80 billion as hot US inflation fuels rate fears
Economic Times 1 hr ago·14 Oct 2026, 6:52 pm
AI‑focused stocks in the U.S. market saw sharp declines, with shares of companies such as CoreWeave and Dell Technologies falling as much as 16%. The slide was sparked by hotter‑than‑expected inflation data, which has revived concerns that the Federal Reserve may keep interest rates higher for longer, making borrowing more expensive for AI firms that are still chasing profitability.
The sell‑off erased roughly $80 billion of market value across the sector, underscoring how sensitive AI valuations are to macro‑economic shifts. Investors are reminded of the dot‑com bust, where lofty growth expectations were quickly tempered by tighter financing conditions.
Going forward, market participants will be watching the Fed’s policy outlook, upcoming earnings reports from both AI leaders and smaller players, and any signs that the sector can sustain growth without relying on cheap credit.
Excerpt from Economic Times
Amid rising inflation, major AI firms like CoreWeave and Dell Technologies experienced significant stock price drops, losing around $80 billion in market value. Increased US interest rates have investors worried about the borrowing hurdles faced by less profitable firms within the sector. Even with the strong…Read the original at Economic Times
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- Category: Stocks.
- AI reads the tone as negative (potentially bearish) for the stock.
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