AI rally fades away from Wall Street as a tiny IPO makes big waves

This is CNBC's Morning Squawk newsletter. Subscribe here to receive future editions in your inbox.Hello, this is Leonie Kidd, with today's edition of Morning Squawk.Wall Street's AI relief rally hit a wall in Asia and Europe, turning the neoclouds dark on the horizon. It puts more emphasis on earnings today, with Netflix and SpaceX in the spotlight. Happening now: Tech on, Tech offU.S. stock futures are giving up some of their overnight optimism following the bounceback for AI stocks on Monday, as a sharply negative session in Asia shows jitters remain around technology stocks. A negative close for CoreWeave, as well as elevated yields on Oracle debt, expose persistent credit concerns in the AI trade. International selling: South Korea's Kospi has led broad declines in Asia, closing in bear market territory. Meanwhile, across Europe, technology stocks pushed indices into the red during the morning session. Problematic IPO: South Korean AI data center firm, Elice, debuted as a small IPO on the country's secondary market, but shares made a big nosedive, falling over 30% in the trading debut. Why it matters: Other data center firms have cancelled their IPO plans, including Nvidia-back...