U.S. Stocks Close | Major Indices End Lower Amid Tech Selloff; Storage, Optical Communication Concepts Plunge Across the Board, SanDisk, ALAB Drop Over 14%; Tesla, Apple, Netflix Buck the Trend with Gains

Following Oracle, Broadcom also experienced a significant drop in its stock price due to its AI business, intensifying investor concerns over the high valuations across the AI sector. Reports indicated delays in some of Oracle's data center projects, further dampening market sentiment. The semiconductor index plummeted, nearly erasing all gains since December. The Nasdaq index fell by nearly 400 points in a single day. Despite the Federal Reserve's announcement of a more dovish policy than expected this week, challenges facing artificial intelligence development have led to mixed performances in the U.S. stock and bond markets. The Dow Jones Industrial Average still managed to rise over 1%, marking its third consecutive weekly gain. The cryptocurrency market vividly reflected this week's turmoil, with Bitcoin prices fluctuating sharply between $90,000 and $94,000, yet ending the week almost unchanged.

wallstreetcn07:13

Trump says Kevin Warsh is at the top of the list for Fed Chair candidates | Global Markets

① Oracle responded that it will not delay the construction of data centers related to OpenAI; ② EU member states have reached an agreement to indefinitely freeze the assets of the Russian central bank in Europe; ③ Trump stated that Thailand and Cambodia have agreed to a full ceasefire; ④ The Israeli military claimed to have struck a Hezbollah training base in southern Lebanon.

cls.cn06:54

AI Concerns Mount as Oracle Faces Delays with Some Data Centers Not Scheduled for Completion Until 2028

Following a surge in Oracle's AI spending and Broadcom's earnings call falling short of investors' high expectations, reports indicated that Oracle postponed the completion date of some data centers developed for OpenAI from 2027 to 2028, primarily due to labor and material shortages. Oracle's shares once dropped over 6%, with AI-related stocks and even utility stocks experiencing widespread declines. Oracle later denied the report, stating that none of its contracted data centers had encountered delays.

wallstreetcn06:41

The delay in data center reports triggered a sell-off, with Oracle bonds treated as junk and CDS surging to the highest level since 2009.

Oracle is becoming a key indicator in the credit market for assessing AI-related risks. Compared with other cloud computing giants, Oracle has drawn significant market attention due to its weaker credit rating and rapidly increasing debt. The maturity of some of its bonds extends as far as 2065, which appears particularly lengthy given the uncertainties surrounding AI's future prospects.

wallstreetcn06:32

Options Corner: Oracle's Earnings Whiplash Has Reshaped Its Probability Curve

Benzinga04:56

Oklo Shares Slide As Oracle Delays Dampen AI Energy Optimism

Benzinga04:44