US Stock Market Move | Cloud computing service provider concept stocks broadly declined; IREN Ltd (IREN.US) fell nearly 6%.

On Tuesday, cloud computing service provider concept stocks broadly declined. IREN Ltd (IREN.US) fell nearly 6%, CoreWeave (CRWV.US) dropped nearly 4%, Nebius (NBIS.US) declined more than 2%, and Hut 8 (HUT.US) fell more than 1%. On the news front, on October 20, South Korean AI data center company Elice fell more than 30% on its first day of trading, intensifying investor concerns about AI infrastructure valuations and returns on investment, putting pressure on data center and technology stocks. CoreWeave's shares plunged more than 15% in a single day last Wednesday. This sharp fluctuation did not stem from weak demand but was a direct reflection of rising interest rate pressure. Radek, co-head of Citi's American Software, Inc. Class A business research department, said that although rental prices for Nvidia H100 chips are near historical highs, the yield on bonds issued by CoreWeave has approached 15%. Since March, the yield on 10-year U.S. Treasury bonds has risen by about 30%, posing a severe challenge to borrowers lacking investment-grade credit ratings.