This big drop in U.S. stocks was caused by multiple factors, and surprisingly, interest rate hikes weren’t even the most critical one. One key issue drawing attention is the debt problem of the new cloud service provider CoreWeave. Investors have been dumping CoreWeave’s five-year corporate bonds en masse, causing its yield to soar to 16.2%. Under these circumstances, the credit spread between CoreWeave’s five-year corporate bonds and U.S. Treasury bonds continues to widen, reflecting the market’s doubts about the sustainability of CoreWeave’s 'aggressive expansion model' and its demand for higher risk compensation regarding 'refinancing ability and profit outlook.' If the Fed raises interest rates, it could push the yield on CoreWeave’s five-year corporate bonds even higher. Although the Fed considers inflation and employment as its two main factors, if rate hikes burst the AI bubble and force the U.S. into an economic recession, that’s a burden the Fed cannot afford to bear.