Markets took a sharp hit as news that Anthropic likely won't get an investment-grade credit rating after its IPO rattled Wall Street, dragging tech and AI-linked stocks down hard.

• The Nasdaq 100 dropped into correction territory, down around 10% from highs, with chip and software stocks (Intel, Reddit, Roblox, Twilio) among the hardest hit.
• Blackstone told investors Anthropic's debt is likely to get a "junk" rating instead of investment grade, unlike SpaceX, which has full investment-grade backing — that makes borrowing more expensive and spooks investors who worry AI spending could slow.
• Fear indicators spiked: Goldman Sachs' panic index hit its highest level since July, and trading desks reported the largest wave of selling in years, hinting at forced selling by hedge funds and big investors.
• Despite the panic, Anthropic's actual finances look solid — strong cash reserves, manageable near-term bills, and improving cash flow — the real issue is that the company has committed to roughly 17 years' worth of future operating income on long-term computing contracts.
• Other factors piled on the gloom, including Middle East tensions and a big merger deal (Mallinckrodt/Lumentum) that spooked investors further.

Outlook: Expect continued volatility in AI and chip stocks as markets digest Anthropic's financing risk, though some analysts see the selloff as overdone given the company's underlying financial health.