Stock Market Declines as Oracle Faces AI Funding Concerns

Dec 18, 2025, 2:26 AM

Hover over text to view sources

US stocks experienced significant declines on Wednesday, primarily influenced by concerns surrounding Oracle's financial stability amid its ambitious AI projects. The Nasdaq Composite fell approximately 1.8%, marking a notable downturn as tech stocks faced intensified selling pressure. The S&P 500 also dropped over 1%, while the Dow Jones Industrial Average lost around 0.5% in a day that saw mixed results in earlier trading sessions.

The catalyst for this downturn was a report from the Financial Times indicating that Oracle's $10 billion data center initiative had lost backing from private lender Blue Owl Capital. This news raised alarms about the increasing reliance on debt by tech companies to finance their capital expenditures on AI infrastructure, particularly as demand for such technology remains uncertain.

Oracle's stock plummeted nearly 6% in response to the funding concerns, dragging down other major tech stocks in its wake. Notable declines included Nvidia, which fell almost 4%, Broadcom, down over 4%, and Google, which saw a drop of over 3%. The scrutiny on Oracle's financial strategies has intensified as investors worry about the company's ability to manage its debt if AI demand does not meet expectations.

The situation has also put a spotlight on Micron Technology, which is scheduled to release its quarterly results later today. Analysts are keenly awaiting this report, as it is expected to provide insights into the demand for AI semiconductors, a key area of focus for the tech sector.

In the broader economic context, Wall Street has been navigating a period of uncertainty, particularly regarding the Federal Reserve's interest rate policy. Investors are looking for clear signals from upcoming economic data, including the November jobs report and a consumer inflation update set to be released on Thursday. Fed governor Chris Waller hinted that there is still room for rate cuts, suggesting a potential decrease of "50 to 100 basis points" in the future.

The market's reaction to Oracle's struggles highlights the fragile state of tech stocks, which have been under pressure as investors reassess the sustainability of growth driven by AI investments. The decline in Oracle's stock, coupled with broader tech weaknesses, raises questions about the viability of aggressive spending in the AI sector, especially when backed by substantial debt.

While tech stocks faced challenges, other sectors showed mixed performance. For instance, Netflix's stock rose after Warner Bros. Discovery's board urged shareholders to reject a competing bid from Paramount Skydance, indicating some resilience in the entertainment sector amidst the broader market turmoil.

Overall, the stock market's decline today reflects a complex interplay of investor sentiment, economic data, and specific corporate challenges, particularly in the tech industry. As companies like Oracle navigate funding hurdles, the implications for the tech sector and the broader economy remain to be seen.

Zillow's Value Proposition After Market Turbulence

Zillow has faced significant challenges in its iBuying segment, leading to substantial losses and layoffs. Despite these setbacks, the company is pivoting its strategy and focusing on partnerships to regain market stability. This article explores whether Zillow can still offer value in the evolving real estate technology landscape.

QQQ vs. SPY: Tech Growth vs. S&P 500 Stability

Investors often weigh the tech-focused growth of QQQ against the stability of SPY, which tracks the S&P 500. While QQQ has shown stronger returns, it comes with higher volatility. SPY offers broader sector diversification and a higher dividend yield, making it appealing for conservative investors.

Stock Market Update: Dow, S&P 500, Nasdaq Futures Rise

US stock futures rose on Friday, signaling a positive end to a volatile week. The S&P 500 and Nasdaq Composite gained significantly, buoyed by signs of cooling inflation and renewed confidence in the tech sector, particularly with Nvidia's AI chip sales to China. The Dow, however, experienced a slight decline over the week.

Stock Market Rises as Nvidia and Oracle Lead Tech Revival

US stock markets experienced gains on Friday, with the S&P 500 and Nasdaq Composite rising due to positive developments in the tech sector, particularly from Nvidia and Oracle. The Dow Jones Industrial Average also saw an increase, though it ended the week with a slight loss.

Stock Market Rises as Inflation Eases and Micron Reports Strong Earnings

US stocks saw a rebound on Thursday, driven by easing inflation data and a strong earnings report from Micron Technology. The Nasdaq Composite led the gains, rising 1.4%, while the S&P 500 and Dow Jones also posted increases. Investors are closely monitoring the implications of these developments on interest rates and the tech sector.