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Stock market today: Dow, S&P 500, Nasdaq sink as Oracle stock gets hit over AI funding worries

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US stocks fell on Wednesday as investors weighed what the latest data means for the Fed’s interest rate policy, with tech stocks under pressure as Oracle (ORCL) slid.

The Nasdaq Composite (^IXIC) sank about 1.8%, as the tech-led sell-off accelerated into the close. The S&P 500 (^GSPC) fell over 1%, as tech weakness returned emphatically. The Dow Jones Industrial Average (^DJI) lost around 0.5%, after US stocks finished mixed in Tuesday’s session. 

AI trade worries rattled tech stocks again following a Financial Times report that Oracle’s $10 billion data center project has lost the backing of private lender Blue Owl Capital. It comes amid scrutiny of increasing use of debt and off-balance-sheet moves to fund tech companies’ capital spending on AI infrastructure, despite persistent questions over demand for the tech.

Oracle shares fell nearly 6%, and megacap tech stocks followed. Nvidia (NVDA) lost almost 4%, Broadcom (AVGO) sank over 4%, and Google (GOOG) was down over 3%.

Tech’s bruising intensifies the spotlight on Micron Technology’s (MU) quarterly results, due after the bell on Wednesday. Its report should help paint a clearer picture of demand on the AI semiconductor side of the market, as the company supplies chips for Nvidia’s server systems.

Meanwhile, weeks in a data vacuum, Wall Street is trying to find a clear signal in a noisy November jobs report to pinpoint a path for interest rates next year. Markets are also waiting for the other data shoe to drop: Thursday’s update on consumer inflation in November.

In a clue to the path ahead, Fed governor Chris Waller said Wednesday that the central bank still has scope to cut rates, hinting at “50 to 100 basis points” of room.

Elsewhere in corporates, Netflix (NFLX) stock rose after Warner Bros. Discovery’s (WBD) board called on shareholders to reject a rival bid from Paramount Skydance (PSKY), questioning funding guarantees.

LIVE COVERAGE IS OVER 23 updates

  • Micron stock pops after hours

    Micron (MU) stock surged as much as 7% in after-hours trading after the memory chip maker beat Wall Street estimates and raised its fiscal second quarter revenue guidance.

    Micron reported earnings per share of $4.78 on revenue of $13.64 billion, compared to expectations of earnings per share of $3.96 and revenue of $12.88 billion, according to S&P Global Market Intelligence.

    Reuters reports:

    Listen to the earnings call live here.

  • Ines Ferré

    Stock sink over AI worries

    Stocks were hit on Wednesday as concerns over funding in AI weighed on the tech sector.

    The Nasdaq Composite (^IXIC) dropped more than 1.8% while the S&P 500 (^GSPC) slid 1%. The Dow Jones Industrial Average (^DJI) lost 0.4%.

    Oracle (ORCL) shares led tech lower after an FT report indicated the company’s $10 billion data center project has lost the backing of private lender Blue Owl Capital. The stock is down more than 40% from its peak in September.

    Investors will turn their focus to Micron Technology’s (MU) quarterly results, which are due after the bell, as well as the November Consumer Price Index report scheduled for Thursday.

    Investors flocked to safe-haven metals. Gold (GC=F) neared a record high, extending its year-to-date gains to above 60%.

    Meanwhile, silver (SI=F) jumped 5% to trade above $66 per ounce.

  • Ines Ferré

    Tesla’s car business is only worth $30 a share, analyst warns

    Yahoo Finance’s Francisco Velasquez reports:

    Tesla (TSLA) is currently trading like a futuristic AI powerhouse, thanks to a recent robotaxi win. But a closer look suggests its core business of building and selling EVs is only worth a fraction of its market cap.

    “Tesla is being viewed more and more on autonomy and energy,” Jed Dorsheimer, group head of energy research at William Blair, told Yahoo Finance’s Opening Bid.

    On Wednesday shares of the EV giant retreated after closing at a record high.

    Read more here.

  • Ines Ferré

    Gold climbs near record while silver squeeze sends precious metal skyrocketing

    The price of precious metals jumped on Wednesday as the broader markets sank.

    Gold (GC=F) neared a record high, extending its year-to-date gains to more than 60%.

    Meanwhile, silver (SI=F) jumped 5% on Wednesday, touching new highs amid what appeared to be a short squeeze, as traders who had bet on falling prices were forced to cover their positions, driving prices higher.

  • Ines Ferré

    Bitcoin hovers at $86,000 as token faces ‘lackluster’ end of 2025

    Bitcoin (BTC-USD) hovered near $86,000 on Wednesday as Wall Street remained wary of a meaningful rebound heading into the end of the year.

    Recent jitters over AI-related stocks and speculation over who will take over Fed Chair Jerome Powell’s position next year may be keeping a lid on prices.

    “For a while, the market was convinced that ultra-dove Kevin Hassett was a shoo-in for the next Fed Chair role, but now Kevin Warsh — a far more hawkish candidate — appears to be emerging as the frontrunner,” Coin Bureau investment analyst and co-founder Nic Puckrin said.

    Read more here.

  • GE Vernova stock pulls back after Oracle data center snafu casts doubts on AI boom

    GE Vernova (GEV) stock was one of the AI-related plays getting crushed in the wake of Oracle’s (ORCL) nearly 5% slide on Wednesday.

    Shares of the energy infrastructure company, which spun off from General Electric (GE) in 2024, dropped nearly 8% in midday trading as valuation concerns came to the forefront. Year to date, GE Vernova stock has run up 93%, inclusive of a 15% gain last Wednesday, after the company announced plans to roll out a fuel cell business for data centers at its investor day.

    GE Vernova has been seen as a beneficiary of the AI infrastructure build-out, as demand for energy transmission and grid integration is booming. According to RBC analyst Christopher Dendrinos, GE Vernova’s electrification backlog has grown 4x since 2022 and is projected to double again by 2028.

    But news that private lender Blue Owl Capital (OWL) will not back a $10 billion deal for Oracle’s data center threw funding for that build-out into greater scrutiny on Wednesday.

    Still, GE Vernova CEO Scott Strazik emphasized in an interview last week that the company has “a lot of other drivers” of demand. Strazik said that only 10% of the company’s current backlog comes from hyperscalers, which could grow to approximately one-third of the backlog over the next three years.

  • Medline stock begins trading above $35 per share

    Medline (MDLN) shares began trading on Wednesday afternoon at $35 each. The stock popped over 26% above the expected IPO price of $29.

    Early trading gave the company, which makes gauze, hospital beds, and a host of other medical supplies, a market capitalization of $28.65 billion, according to Yahoo Finance data.

    Read more here.

  • Laura Bratton

    The stock market is being powered by 10 stocks that are fueling AI bubble fears

    Yahoo Finance’s Brian Sozzi writes:

    Read the full story here.

  • Laura Bratton

    Fed’s Waller favors more rate cuts next year

    Yahoo Finance’s Jennifer Schonberger reports:

    Read more here.

  • Laura Bratton

    AI chip stocks sink as tech names come under pressure

    The tech-heavy Nasdaq Composite (^IXIC) led a partial market downturn as stocks diverged on Wednesday.

    AI chip names fell across the board, with Google (GOOG) TPU supplier Broadcom (AVGO) sinking 3% and Nvidia (NVDA) dropping 2%. AI chipmaking machine producer ASML (ASML) also shed 3%, while contract semiconductor manufacturer TSMC (TSM) dropped nearly 2% and Nvidia rival Advanced Micro Devices (AMD) edged down just over 1%,

  • Myles Udland

    Medline raises $6.3 billion in year’s biggest IPO

    The biggest IPO of 2025 is getting in just before the finish line.

    Medical supply giant Medline (MDLN) said late Tuesday that it had raised $6.26 billion in its IPO, selling a little over 216 million shares at $29 a piece, with the stock set to begin trading on Wednesday. The IPO values Medline at upwards of $50 billion, based on a total of roughly 1.8 billion Class A and Class B shares outstanding.

    The deal caps the best year for the IPO market since 2021, with Wall Street’s outlook for deals and new issues even more optimistic heading into 2026.

    Recent reports have indicated that SpaceX is likely to go public in 2026, with the company having recently struck a deal for insiders to sell stock in Elon Musk’s rocketry and satellite business that valued the company at $800 billion.

    Major AI players like OpenAI and Anthropic are also expected to explore going public within the next 18 months, according to The Information. Database giant Databricks, which raised money at a $134 billion valuation this week, said it could explore a public offering as soon as next year.

  • Laura Bratton

    Oracle drops on debt concerns

    Oracle (ORCL) shares fell nearly 4% Wednesday after the Financial Times reported that private lender Blue Owl Capital will not back a $10 billion deal for its next data center as the burgeoning AI cloud player rushes to secure computing capacity and investors scrutinize its mounting use of debt to do so.

    The decline put Oracle shares down nearly 18% for the month. The stock fell after the company’s earnings last week showed its costs rising more than expected while bleeding more cash than anticipated. The tech firm’s $248 billion in off-balance sheet lease obligations revealed in its quarterly SEC filing added to investor fears over its growing debt pile, while its over-reliance on OpenAI to meet its ambitious revenue targets has also sent shareholders backpedaling.

    Though Oracle execs said after its earnings results that it’s committed to maintaining an investment-grade credit rating — it currently has a BBB rating on its bonds — investors haven’t been so sure, piling into Oracle credit default swaps that saw spreads reach their highest level since 2009 last week.

  • Stocks rise at the open

    Stocks rose briefly at the market open as Wall Street weighed the latest jobs data and oil surged, while Oracle (ORCL) shares slid.

    The S&P 500 (^GSPC) and the tech-heavy Nasdaq Composite (^IXIC) moved up nearly 0.2%. The Dow Jones Industrial Average (^DJI) added 0.3% after US stocks finished mixed in Tuesday’s session.

  • General Mills stock rises as revenue tops estimates, guidance reaffirmed

    General Mills stock (GIS) climbed about 1% in premarket trading after earnings missed estimates, but revenue came in better than expected for the quarter.

    The Cheerios maker reported fiscal second quarter earnings per share of $0.78 on revenue of $4.86 billion. Wall Street analysts estimated earnings of $1.04 on revenue of $4.78 billion, according to S&P Global Market Intelligence.

    General Mills’ efforts to invest in its brands, divest its North American yogurt business, and unfavorable trade comparisons weighed on the results, the company said.

    For the full fiscal year, which ends in May, General Mills reaffirmed it expects net sales growth to range from a decline of 1% to an increase of 1%. Adjusted operating profit and adjusted diluted EPS are both expected to fall 10% to 15% for the year.

    General Mills’ guidance was largely in line with analysts’ expectations. Although many on the Street believe the packaged foods company is facing some challenges, analysts noted that these challenges are already reflected in the stock price.

    “Underlying fundamentals remain challenging, but we think many are of the view that this is largely reflected in Street estimates and with shares trading at a discount to PF peers on a historical basis and no major surprises expected for the print itself, many find it difficult to see how the stock could trade lower,” UBS analysts wrote in a note ahead of the results.

  • Brett LoGiurato

    Hut 8 shares surge as ex-bitcoin miner signs $7 billion AI data center lease

    Reuters reports:

    Read more here.

  • America’s biggest banks are ending 2025 on top with big growth goals and markets ‘wide open’

    Bank of America (BAC), JPMorgan Chase (JPM), Wells Fargo (WFC), and Citigroup (C) are setting ambitious plans for growth in 2026 as they wrap up an upbeat 2025.

    Yahoo Finance’s David Hollerith reports:

    Read more here.

  • Warner Bros Discovery board urges shareholders to reject rival bid from Paramount

    The contest for Warner Bros. Discovery (WBD) took a fresh twist as the Hollywood giant’s board urged shareholders to reject Paramount Skydance’s (PSKY) $108.4 billion offer, saying it was “inferior” to the current merger deal with Netflix (NFLX).

    Shares of WBD and Paramount traded 1.6% and 1.8% lower, respectively, while Netflix stock rose 1.3% before the bell.

    Reuters reports:

    Read more here.

     

  • Tesla’s Robotaxi progress gives investors proof of the AI dream

    Yahoo Finance’s Hamza Shaban reports:

    Read more here in the takeaway from today’s Morning Brief.

  • Jenny McCall

    Good morning. Here’s what’s happening today.

  • Amazon said to be in talks to invest about $10 billion in OpenAI

    Shares in Amazon (AMZN) ticked up in premarket after Reuters reported that it is eyeing a $10 billion investment in OpenAI (OPAI.PVT), citing a source familiar with the matter.

    The potential deal, which could value the ChatGPT maker at over $500 billion, comes as some on Wall Street question the circularity of investments in AI providers and Big Tech.

    Reuters reports:

    Read more here.