Oracle collapses amid fresh AI worries on Wall Street

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Oracle collapses amid fresh AI worries on Wall Street
Photo: Richard Drew/AP/TT

Wednesday's interest rate cut in the US failed to spark a general rally as renewed concerns about overvalued AI stocks sent Wall Street into a tailspin. Cloud services company Oracle fell like a stone.

Admittedly, the Dow Jones Industrial Average climbed a full 1.3 percent, thus closing at a new record level.

But the broad S&P 500 index, up 0.2 percent, and the Nasdaq's tech-heavy composite index - which fell 0.3 percent - stayed more on the sidelines.

Cloud services company Oracle, whose sales fell short of expectations in Wednesday's quarterly report after the stock market closed, plunged 10.8 percent.

It also caused other AI-focused stocks to go down heavily in New York. Just a couple of the big, AI-linked tech companies known as the “Magnificent Seven” stepped up.

But Walt Disney, which announced an investment of just over SEK 9 billion in OpenAI, bucked the trend. Disney's stock rose 2.4 percent.

On Wednesday, the Federal Reserve announced that the key interest rate would be lowered by a quarter of a percentage point.

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By TT News AgencyEnglish edition by Sweden Herald, adapted for our readers

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