AI stock pullback spreads as investors question data-center debt loads

A pullback in AI-related stocks has spread beyond equities, as investors question whether heavily indebted data-center and AI-computing companies can earn enough to cover their borrowing costs. The selloff hit major chipmakers and cloud infrastructure firms, including CoreWeave, and contributed to sharp declines in U.S. technology shares and Asian markets. Concerns about persistent inflation and potentially higher interest rates have added pressure, while elevated borrowing costs threaten to make data-center expansion more expensive. Some investors have shifted into U.S. Treasuries as a haven, pushing yields lower and putting the dollar on track for its first weekly decline in five weeks, while the euro has rebounded from a 17-month low.