A hotter-than-expected US inflation print triggered a sharp sell-off across technology, AI and Bitcoin mining equities, with four major mining-focused companies losing more than 12% in a single session. TeraWulf fell 12.64%, Core Scientific dropped 12.44%, Cipher Mining slid 12.35%, and IREN declined 12.2%. The S&P 500 lost 1.1% — its worst daily drop since July 29 — while the Nasdaq Composite fell 1.9%. CoreWeave, an AI data center operator, plunged 16%, Nebius lost 11%, and Oracle dropped 9%.
The selloff reflects mounting concern that persistent inflation could force the Federal Reserve to keep interest rates higher for longer or even resume hikes, raising financing costs for companies priced on high future growth. In pre-market trading Thursday, Nvidia slipped 1.8%, AMD fell 2.5%, and Micron lost 4%, while Nasdaq 100 futures were down about 1.3%. CoreWeave’s unsecured bond yields approached 15%, a level Bernstein analyst Madison Rezaei described as typically associated with distress, signaling financing stress across AI infrastructure.
The pain is particularly relevant for Bitcoin miners that have pivoted toward leasing energy capacity to AI and high-performance computing clients. While this diversification creates new revenue, it also ties their valuations more closely to technology-sector risk appetite, funding costs, and AI capital expenditure cycles. Barclays downgraded Dell, Hewlett Packard Enterprise and NetApp, with analyst Tim Long arguing that enterprise AI spending has not yet reached a meaningful inflection point.
Still, TSMC reported its sixth consecutive quarter of record profit, with net income up 69%, and said AI demand remains robust and continues to exceed supply. Jefferies economist Mohit Kumar warned that a slowdown in AI infrastructure build-out would imply a sharp slowdown in US growth expectations, but he expects earnings season to show demand and profits remain solid. For crypto markets, the episode reinforces how macro and equity market risk appetite can spill over into Bitcoin-linked equities and broader digital asset sentiment.
