US Stock Market Move | Credit risk concerns persist, AI cloud service providers continue to decline, CoreWeave (CRWV.US) drops over 6%.

On Friday, AI cloud service providers continued to decline, with CoreWeave (CRWV.US) and IREN (IREN.US) falling over 6%, and Nebius (NBIS.US) dropping more than 5%. CoreWeave's three co-founders cashed out over $3.3 billion in total before the company's stock price collapsed, and the company's bonds have now fallen into distressed territory, with credit default swap spreads surging to historic highs, sharply escalating market concerns about its debt repayment capacity. According to statistics from company filings, Michael Intrator, Brian Venturo, and Brannin McBee have continuously sold down large holdings since the March 2025 IPO, cashing out a combined $2.4 billion in 2026 alone. In addition, the company's debt pressures are accelerating. As of the end of this week, CoreWeave's 9.625% unsecured bonds maturing in 2032 had fallen to about 76 cents on the dollar, already hitting the threshold typically defined by the market as distressed debt; the five-year credit default swap spread rose to a record 1,117 basis points, implying a 63% probability of default within five years.