Closing Bell 10/14/26

SPEAKER_1 (0:00)

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Frank Holland (0:35)

And we'll see you next time.

SPEAKER_1 (0:36)

And welcome to Closing Bell.

Frank Holland (0:37)

I am Frank Holland. In for Scott Wapner.

SPEAKER_1 (0:43)

Stocks under pressure, falling sharply.

Frank Holland (0:46)

How do they expect the inflation print sends yields higher.

Frank Holland (0:57)

And we'll see you next time. Take care. Take care.

Inflation for Scott Wapner, stocks under pressure falling sharply as the higher than expected inflation print sends yields higher. Raising some fresh questions about the Fed's next move. Let's get the scorecard with 60 to go in regulation. A lot of red on this board. The Dow pulling back about 200 points, just under a half a percent. The S&P down one and a third percent. The NASDAQ down more than 2 percent. The small caps down more than 2 percent as well. We also want to take a look at Treasuries. Trading pretty close to multi-decade highs when we're talking about yields still a bit lower than we saw just earlier this month. Right now, you're looking at the 10 year coming in at 5.19 percent. The 30 year, just over five and a half percent. The big story today, the sell-off in AI infrastructure names. Some of the biggest winners of the AI boom now taking some of the biggest hits. CoreWave plunging double digits, Oracle, Nebius and other names tied to the AI buildout. They're also getting hammered. You see CoreWave falling back more than 15 percent. And it's spilling into the chips and the memory stocks. All of them are lower. You're going to see a lot of red on this board as well. Taking a look, AMD pulling back 6 percent. SK Hynix down about 6 percent as well. One notable bright spot in Big Tech today, that is shares of Apple bucking the broader sell-off in the green, as you can see, up over a half a percent and within striking distance of record highs and nearing the $5 trillion market cap milestone. And that takes us to the talk of the tape. Is this just all a reset of sorts? One of the market's hottest trades? Or are borrowing costs rising, exposing some new risk in the AI boom? That's where we begin with our own Seema Modi. Seema.

Seema Modi (2:29)

Well, Frank, the sharp drop in Corweave shares, prompting CEO Mike Intratour to send a memo to employees today where he attempts to calm concerns around its financing measures. We reviewed that memo. He writes that there will be a period of time when the market misunderstands and acts irrationally. He adds that he's confident in Corweave's backlog, which he says more than supports all of its debt obligations. He then goes to say that not all companies are following the same playbook, some raising enormous amounts of capital, he says, without execution.

It's worth noting companies that buy GPUs and lease them out, like Corweave as well as Nebius and Oracle, are trading substantially lower right now. As are other companies invested in the AI infrastructure build-out. Think about the servers, specifically Dell, Supermicro, Hewlett-Packard, Enterprise, all down while the chip stocks remain solidly lower as the entire sector reacts negatively to the spike in bond yields, which have elevated these new concerns around leverage. I also just want to flag credit default swaps, Frank, for some of these AI stakeholders rising a new high for Oracle's five-year, indicating that investors on the credit side are hedging their risk, Frank.

Frank Holland (3:37)

Cia Mimoti, thank you very much. We now want to bring in Yorkville Ives, Dan Ives, to talk more about some of the pressure that we're seeing in technology today. Dan, always good to see you.

Dan Ives (3:46)

Great to see you, Frank, thanks.

Frank Holland (3:48)

All right, you just came out with a note saying there's some jitters about the AI build-out. We're certainly seeing names like CoreWeave and also Oracle, a name that you cover.

Break it down, is this just about higher yields? Because the yields aren't as high as they were just a few weeks ago. Why today are we seeing this kind of pressure?

Dan Ives (4:04)

I mean, clearly CoreWeave being sort of the poster child for what we're seeing in terms of the nervousness. But Frank, I think it just comes down to the worries like, are yields, is that going to constrict the data center build-out? Are you seeing cracks in the armor? I can tell you, I'm here in Korea from a memory perspective. It's accelerating, I mean, significantly, where I don't even think we have equilibrium demand to supply till late 2028, early 2029 So I just think this is a white-knuckle moment, market way overreacting, and I think we're going to get through earning season, and that's going to be the calming force, because we're going to see from the hyperscalers and ultimately the chip players, and the demand you just cannot ultimately deny.