US Stock Market Move | Default concerns intensify, AI cloud service providers continue to plunge, CoreWeave (CRWV.US) drops over 7%.

On Thursday, AI cloud service providers continued to plunge. NEBIUS (NBIS.US) fell over 10% further, ranking among the biggest decliners in the Nasdaq 100 Index; CoreWeave (CRWV.US) dropped more than 7% further, bringing its decline so far this week to about 25%. CoreWeave's five-year credit default swap (CDS) spread widened by 135 basis points to a record high of 1,117 basis points, implying a roughly 63% probability of default within five years. CoreWeave CEO Michael Intrator, in an internal memo, blamed the market reaction on a "misjudgment," saying the company is fully confident in its business model yet after the memo was sent, the CDS spread instead continued to widen to the aforementioned record level. Credit markets' pricing of CoreWeave's default risk continues to soar, with well-known research firm Gartner warning that it predicts more than 80% of emerging cloud service providers (neoclouds) will be unable to survive independently by 2030.