The Nasdaq sank 2.5% on Thursday, with chip stocks and AI infrastructure names hit hardest by growing concerns about the scarcity of capital available to fund the AI buildout. Broadcom CEO Hock Tan’s warning, followed by CoreWeave’s bond selloff, intensified those concerns, while Meta Platforms dropped 7.5% after reporting negative free cash flow and indicating that it may need to raise hundreds of billions of dollars beginning as early as fall 2026. Nvidia CEO Jensen Huang acknowledged that demand for capital far exceeds its availability but expressed confidence that the funding gap for neoclouds will eventually be resolved. Meanwhile, the 10-year Treasury yield fell below 5% for the first time since September 23, helping high-dividend stocks, housing and Home Depot outperform as the Dow Jones finished nearly flat; Western Digital, Bloom Energy, American Express and SLB are due to report earnings, followed by key US economic indicators.
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