1. CoreWeave's 15% bond yield.

CoreWeave's credit scare spread across the AI complex as investors punished the companies relying most heavily on borrowed money to fund data centers. The hot inflation numbers also did not help.
Roughly $52B in debt and lease obligations at the end of June, and a second-quarter interest bill of $640M, nearly double a year earlier. Hot inflation pushed borrowing costs higher, which is a problem when growth requires another data center, another loan, and another mountain of GPUs.
Its 9.625% bond due 2032 traded below 80 cents on the dollar at yields near 15% !!!
CEO Mike Intrator told employees that CoreWeave's $104.2B backlog was large enough to support its debt, according to Reuters.

2. AI firms are taking on long-dated, high-cost debt to fund hardware that may need replacing well before those debts are repaid.

The tech giants funding the AI infrastructure build-out are seeing their free cash flow squeezed.
For hyperscalers, the spending comes first. The returns will depend on future demand, monetisation and utilisation.
JPMorgan still sees attractive returns on certain data-centre investments but attractive returns and immediate cash flow are two different things.
The timing gap matters.

Below: Hyperscaler capex forecast

3. Rosenberg warns of most stretched market in his 40-year career.

David Rosenberg said the United States stock market was increasingly looking like a bubble, with valuations, leverage and investor positioning at extremes unseen in his 40-year career.
The founder of Rosenberg Research and former Chief Economist at Merrill Lynch sees a bull market much more hooked on the fate of artificial intelligence advancements than stocks were on tech in the run-up to the dot-com bubble. He said he’s been buying Treasuries and overseas equities in his portfolios, arguing the U.S. is “the epicentre of the technology boom” that investors are overpaying for.

Below: Most brokerages including Goldman Sachs and Citigroup are not worried and expect the market to go up.

4. The STOXX Europe 600 is bouncing off its 200 day moving average. (at least it was before Wall Street’s close)

European stocks rose, with chip-equipment maker ASML boosting the tech sector after its sales outlook exceeded expectations.
European stocks have struggled on the Iran situation and eyes are on the early stages of the earnings to gauge whether company profits can support a year-end rally.
Morgan Stanley expects European earnings growth in the third quarter to exceed an already exceptional second quarter.
"Our recent marketing feedback suggests subdued investor expectations into the season given the recent wall of worry (e.g. energy, bond yields, OAT spread, cycle concerns) whilst European corporate resilience/strength remain underappreciated," MS strategists wrote.

5. Meta sold more than seven million smart glasses last year.

Meta is market leader with more than 80 percent of sales in the first half of 2026. (Ray-Ban-branded and own-branded models).
Competitors hold only small, single-digit market shares.
However, yesterday, Alibaba unveiled a pair of $450 AI glasses in a push to expand into gadgets.

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