AI Jitters, NYC’s Quest to Delay Anthropic IPO 10/15/26

PodcastSquawk PodGreg FlemingOct 15

Markets faced pressure from faster-than-expected monthly price increases and concerns about the borrowing required to fund AI expansion, even as Taiwan Semiconductor posted another record quarter. The discussion also addressed deficit reduction, entitlement and tax reform, and the risk of concentrated equity gains. Separately, New York City Controller Mark Levine urged Anthropic to delay an IPO over safety concerns, while the city could become a significant shareholder through index-tracking funds.

Artificial Intelligence Semiconductors Inflation Government Debt Market Breadth AI Safety

Preview · 13 more points in the app

Read the Full Summary

Key Takeaways

AI financing concerns and the possibility of further Fed rate hikes weighed on technology shares: CoreWeave fell more than 15% as its debt yields jumped and five-year credit default swaps rose above 1,000 basis points, while Asian chipmakers and technology stocks also sold off. TSMC’s sixth consecutive quarter of record earnings and nearly 70% year-over-year profit growth did not shield its shares from the broader selloff.

Greg Fleming argued that reducing the deficit’s rate of increase should take priority over immediately running surpluses, and said a deficit below 3% of GDP could be well received by bond markets. He also favored a 4.5%–5.25% 10-year Treasury yield range, saying yields near 6% would create more economic problems, while sustained 4% growth could help the U.S. manage deficits.

Speakers argued that rising government spending as a share of GDP makes spending reform necessary, including politically difficult entitlement changes, and Fleming called for bipartisan action on both spending and revenue. A speaker warned Social Security benefits could be cut 22%–23% by 2032 without action; Fleming proposed raising the retirement age as one possible response and called for a bipartisan reform commission.

GEO-POLITICS

SK Hynix Exports — Reuters reported that SK Hynix wants to export U.S. chipmaking equipment to China and is conditioning a new U.S. factory on Washington approving the exports.

“Separately, on SK Hynix, Reuters reporting the company wants to export US chip making equipment to China and is conditioning building a new factory in America on getting that approval…”—

Ukraine Refineries — Volodymyr Zelensky said Ukraine would resume strikes on Russian oil refineries after pausing attacks on energy assets at the U.S. request. He said Russia continued hitting Ukrainian energy resources and killing civilians despite what Trump called an energy ceasefire.

“Ukraine president, Vladimir Zelensky saying, his country will restart strikes on Russian oil refineries…”—

TECHNOLOGY

Anthropic IPO Safety — New York City Controller Mark Levine urged Anthropic to delay its IPO, arguing that public-market pressure to grow and increase profits could distract leadership from safety work. He called for clear thresholds for cyber, bio, and exfiltration risks, plus governance capable of halting deployment.

“Those are not my words. They're reportedly in the s one. They do not claim to have solved that problem. And you have many friends who've been through an IPO…”—

ECONOMY

CPI Surprise — The hosts said monthly CPI showed prices across a range of goods rising faster than expected, adding to investor unease. They did not specify the size of the increase or which prices drove it.

“Yesterday was also the monthly reading of the Consumer Price Index, showing prices on a range of goods across the economy rose faster than expected…”—

Yields And AI Costs — Joe Kernan linked pressure on long-term Treasury yields to growth fears and the borrowing costs of AI investment. He speculated that the Fed might need to raise short-term rates, potentially bringing long-term yields down, and cited moves in CoreWeave’s stock and bonds as evidence of financing concerns.

“I think it's going down for the same reason because of growth fears now and fears about AI and that it's gotten, could get prohibitively expensive because the fed has…”—

Deficit And Growth — Greg Fleming said the priority should be slowing the deficit’s rate of increase, not immediately achieving surpluses. He argued that bringing the deficit below 3% of GDP would be well received by bond markets, and that sustained 4% growth, as tracked by the Atlanta Fed for the third quarter, could help the U.S. manage deficits.

“But it's not just that it's 40,000,000,000,000. It's the increase that I'd like them to deal with. I'm not asking them to run surpluses and start to reduce it…”—

MARKETS

CoreWeave Selloff — CoreWeave shares fell more than 15% as investors questioned the borrowing required for AI build-outs. The transcript also reports the company’s debt yields jumping and five-year credit default swaps rising above 1,000 basis points.

“Core Weave, the latest stock to highlight worries that companies may be borrowing too much for the AI build out…”—

Asian Tech Declines — AI financing concerns and the possibility of further Fed rate hikes weighed on Asian chipmakers and technology stocks. SK Hynix fell 11%, SoftBank dropped more than 9%, the Nikkei declined about 5%, and South Korea’s KOSPI lost more than 7%.

“Move to Asia, Asia chip makers as well and broader tech names also got hit and getting hit today on fears that surrounding those AI financing, what we were just…”—

TSMC Earnings — Taiwan Semiconductor reported its sixth consecutive quarter of record earnings, with net profit up close to 70% year over year and a 58.7% operating margin that beat guidance. Its shares still fell about 2% amid the broader technology selloff.

“And Taiwan Semiconductor shares also getting caught up in the tech pain despite the company reporting record earnings for a sixth straight quarter…”—

FORECASTS

Ten-Year Yield Range — Greg Fleming favored a 4.5%–5.25% range for the 10-year Treasury yield over 5.25%–6%, citing potential AI-driven productivity and weakness in areas such as housing. He said settling in the lower range could let more parts of the economy participate, while yields approaching 6% would create more problems across the economy.

“If you had to bet your life on, is the new range on the ten year four and a half to five and a quarter, or is it five and…”—

AI Trade Wobbles

The hosts connect hotter inflation, rising yields, and borrowing concerns at CoreWeave to growing turbulence in the AI trade.

AI Capital Costs

The hosts debate whether the AI buildout can attract enough capital, how expensive chips remain, and whether competition could compress supplier margins and valuations.

TSMC Record Earnings

Asian technology stocks retreat amid AI financing and rate concerns, even as TSMC reports record earnings and Apple reaches a $5 trillion valuation.

Berkshire Backs Bending Spoons

Berkshire Hathaway increases its investment in Bending Spoons, a software acquirer that buys and actively restructures digital businesses.

Ukraine, Russia, And Starlink

The hosts discuss Ukraine's planned refinery strikes, the claimed US control of Starshield restrictions, and the consequences for Ukraine's defense and energy diplomacy.

Treasury Yields And Market Breadth

Greg Fleming says yields may settle in a lower range, while concentrated stock gains and rate uncertainty are contributing to investor unease.

Deficit And Tax Reform

Fleming argues that slowing deficit growth matters, with the hosts debating spending cuts, taxes, wealth concentration, and the effects on entrepreneurship.

Social Security Reform

The discussion focuses on bipartisan entitlement reform, possible changes to retirement ages, and the political difficulty of avoiding benefit cuts.

Anthropic IPO Safety Debate

New York City Controller Mark Levine urges Anthropic to delay its IPO, citing unresolved AI safety risks, competitive pressures, and the city's likely index-fund exposure.

Related Episodes

AI Stocks Crack, Yields Fall, Defensives Surge; What’s Next | Cameron Dawson

PodcastDavid Lin ReportOct 14

Important Disclaimers

Not Investment Advice: For education only — not financial, tax or legal advice.

AI-Generated: Made by AI from source transcripts and may contain errors.

No Guarantees: Past performance does not predict future results; investing carries risk.

Our Commentary · Request Removal