SpaceX and CoreWeave Inc. were among the biggest casualties in a broad-based credit slump due to renewed fears of tighter regulation on the artificial intelligence industry.
The yields on one of CoreWeave's bonds soared to a record high of more than 17%, while the cost of insuring SpaceX's debt against default also rose to its highest level ever.
Market watchers warned that a Democratic rout could strengthen the party's ability to scrutinize Elon Musk's conduct and impede an anticipated tie-up between Space X and Tesla Inc.