Why S&P 500 Nasdaq Dow down today: Stock market today: Why S&P 500, Nasdaq, Dow dropped – AI stocks crash hit Oracle, Nvidia, AMD, Broadcom, Alphabet
US Stocks Fall as AI Sector Faces Selloff
According to the CNBC report, the S&P 500 index decreased by 1.16% to 6,721.43 points, the Nasdaq Composite index decreased by 1.81% to 22,693.32 points and the Dow Jones Industrial Average index decreased by 228.29 points or 0.47% to 47,885.97 points. This was the fourth consecutive negative day for the S&P 500 and the Dow.
Oracle Stock Drops Today Following Investor Withdrawal Report
AI standout Oracle fell 5.4% after the Financial Times reported that Blue Owl Capital had pulled out of financing the company’s $10 billion data center in Michigan, citing concerns about Oracle’s debt and expenses. The company has since disputed the report, stating that the project is moving forward.
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Broadcom, Nvidia, AMD and Alphabet Also Slip Today
Other major AI-related stocks followed suit. Broadcom is down more than 4%, Nvidia is down nearly 4%, Advanced Micro Devices is down more than 5% and Alphabet is down more than 3%. Since the beginning of the month, Oracle and Broadcom are down more than 11% and around 19%, respectively. The State Street Technology Select Sector SPDR ETF (XLK) is down 2.6% this month.
AI Profitability Concerns Weigh the Market
“We’ve certainly seen a pretty clear shift from large-cap growth to large-cap value, and I think what we’re really seeing is people positioning themselves in a more defensive stance about what’s going to happen next year,” said Brian Mulberry, client portfolio manager at Zacks Investment Management. He added: “The real question being asked, as quoted by CNBC, is ‘Who will monetize these huge investments in artificial intelligence?'”
Mulberry noted that the return of highly valued technology names to more equitably valued sectors will likely continue in 2026. He also underlined that uncertainty around monetary policy could create additional market volatility. He added: “At this point, it will be important to look at specific subsets of factors to determine when and where the AI profitability moment will occur, and that will be things like free cash flow. You can mimic a balance sheet, but you can’t mimic free cash flow.” The biggest driver of returns has now become the biggest risk for the market, CNBC reported.
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S&P 500, Dow Fall After November Employment Data
Investors also evaluate current economic data. The S&P 500 and the Dow suffered losses on Tuesday following the release of the November employment report, which included data from October. Analysts are now analyzing these figures for signals about the Federal Reserve’s next move on interest rates.
Fed Signals a Potential Interest Rate Cut
Fed Governor Chris Waller said Wednesday that the central bank still has room to cut rates, suggesting a scope of “50 to 100 basis points,” according to a Yahoo Finance report.
FAQ
Why did US stock markets fall on Wednesday?
Investors dumped high-flying AI stocks after a report that Oracle’s main investor pulled out of a $10 billion data center project.
How did Oracle shares perform today?
Oracle fell 5.4% following reports about funding concerns for its Michigan data center, but the company is disputing the report.
