AM Markets Need to Know: AI credit stress, chip stocks slide, and more
Stock index futures were mixed on Thursday, with Nasdaq futures under pressure as technology stocks extended their sell-off, amid mounting concerns over artificial intelligence valuations and financing costs.
Here are the five news items investors should watch:
FTC subpoenas Anthropic and OpenAI: The Federal Trade Commission has issued civil subpoenas to Anthropic ANTHROPIC and OpenAI as part of an investigation into potential consumer protection violations, Axios reported. The demands seek information on AI safety incidents, security safeguards, marketing, and privacy policies, with the agency also planning to compel senior executives to testify.
AI debt concerns push credit spreads to records: Credit default swap spreads for Oracle ORCL widened 26 basis points to a record 288 bps, while SoftBank SFTBY rose 24 bps to 424 bps, Reuters reported. CoreWeave CRWV spreads climbed above 1,000 bps, highlighting investor concerns about whether heavy AI infrastructure spending will generate sufficient returns to support rising debt obligations.
Global chip stocks slide as AI spending faces scrutiny: SK Hynix SKHY plunged more than 10%, while Samsung Electronics SSNLF fell sharply as higher borrowing costs intensified concerns about AI investment. SoftBank (SFTBF, SFTBY) also declined in Japan, while European chip equipment stocks ASML ASML and STMicroelectronics STM dropped, extending the sell-off across the semiconductor supply chain.
Taiwan urges Micron and workers to avert strike: Taiwanese President Lai Ching-te called on Micron Technology MU and its employees to negotiate in good faith amid a dispute over bonuses. Speaking at the opening of a new advanced assembly and testing facility in Taichung, Lai backed continued investment in Taiwan, including high-bandwidth memory HBM research and development, as a potential labor dispute threatens operations at a key chip production hub.
Semiconductor-related stocks extend declines across Asia: The sell-off spreads beyond memory chipmakers, with LG Innotek down 8.1%, Seoul Semiconductor falling 7.7%, and Samsung SDI losing 6.8%. In Japan, Advantest ATEYY declined 6.9%, Tokyo Electron TOELF fell 5.4%, and Renesas Electronics RNECF dropped 5.4%, reflecting broad pressure on companies exposed to semiconductor manufacturing and AI-related investment.