[Wall Street Warns of Potential 4.7% Drop in US Stocks as CoreWeave Plunge Raises AI Credit Concerns] BlockBeats reports on October 26th, citing Bloomberg, that the plunge in AI cloud computing company stocks is spreading to tech stocks and the broader US stock market. Since major US stock indices hit record highs on October 6th, CoreWeave's stock price has fallen 41%, while Iren and Nebius have fallen 40% and 36%, respectively. Market concerns are growing that AI infrastructure companies heavily rely on debt financing and may further increase borrowing after earnings reports. With rising US Treasury yields and persistent inflation, financing costs for related companies are increasing, and credit risk indicators for AI investments by some large tech companies have reached new highs. Wells Fargo's chief equity strategist, Ohsung Kwon, warned that the semiconductor industry will face a major shock if new cloud computing companies cut capital expenditures due to financing pressures. The Philadelphia Semiconductor Index has fallen 15% so far in October. Brian Reynolds, chief market strategist at Reynolds Strategy, stated that the sell-off is evolving from individual corporate events into macroeconomic risks, and he expects the S&P 500 to potentially fall back to its early June lows, a further decline of approximately 4.7% from last Friday's closing level. Meanwhile, market concerns about an AI bubble and high-risk debt defaults continue to intensify. [Original Link]