On Monday, AI stocks generally rallied, contributing to a 1% increase in the Nasdaq Composite. However, CoreWeave, which has been under scrutiny due to its debt levels, closed slightly lower after fluctuating throughout the day and hitting a 52-week low.
The company's bond yields remain elevated, indicating ongoing credit concerns, and its five-year credit default swaps are at distressed levels, suggesting that investors are wary of potential default risks. This cautious sentiment reflects broader worries in the AI sector, particularly regarding companies with significant debt exposure