Stock Market Today, Aug. 18: CoreWeave Falls as Debt-Financing Concerns and Capital Spending Pressures Rise With Interest Rates

CoreWeave (CRWV) dropped 12.10% to $93.17 on August 18 as rising treasury yields triggered a rotation out of high-risk growth names and spotlighted the company's debt burden. The AI infrastructure provider carries nearly $30 billion in long-term debt and posted $9.4 billion in capital spending during Q2, making it particularly vulnerable to higher borrowing costs as interest rates climb.

The selloff extended across the AI infrastructure space. Nebius Group (NBIS) and Applied Digital (APLD) both declined sharply alongside CoreWeave, reflecting broader concern that elevated rates will compress margins for companies financing large-scale datacenter buildouts with heavy debt loads.

CoreWeave's capital-intensive business model—requiring billions in upfront investment for GPU infrastructure—becomes less attractive as the cost of servicing its debt pile increases. The stock's double-digit decline signals investor reassessment of growth-at-any-cost strategies in a higher-rate environment.