Risk-off sentiment spread against a backdrop of a sharp decline in AI-related stocks, while CoreWeave's financial burden and debt risk, semiconductor stock trends, and exchange-rate movements in the U.S. dollar and Swiss franc became the market's focus.
Last week, shares of CoreWeave, which provides cloud services for AI, fell approximately 25% on the week, and the company's debt burden was reported to be approximately $50 billion. Against this backdrop, CDS spreads exceeded 1,000 basis points, reaching their highest level on record. Despite strong earnings from semiconductor-related companies, the SOX Index recorded its eighth consecutive decline, falling approximately 11% on the week.
Meanwhile, the resilience of AI-related demand continued to be debated in European and U.S. markets. In addition to developments at TSMC and ASML, higher crude oil prices and the outlook for U.S. interest rates influenced market trading. The Dow remained firm, while the Nasdaq and S&P fell, and the U.S. dollar did not move as a safe-haven asset.
In foreign exchange markets, U.S. dollar buying was limited despite the risk-off environment, and the dollar weakened against major currencies. USD/CHF was particularly notable, falling to the low 0.82 range as the Swiss franc showed relative strength. Earnings from hyperscalers, developments at the Federal Reserve and Bank of Japan, and Europe's energy situation are expected to remain the market's focus.