US Stock Market Today: S&P 500, Nasdaq Fall As Oracle Shares Slump 15% On Poor Earnings
The S&P 500 index shed 0.4%, while the Nasdaq Composite dropped 0.7% at open. The Dow Jones Industrial Average outperformed, rising 103 points, or 0.2%.
Tech stocks dragged US benchmark indices lower on Thursday after Oracle's disappointing quarterly results.
The S&P 500 index shed 0.4%, while the tech-heavy Nasdaq Composite dropped 0.7% at open. The Dow Jones Industrial Average outperformed, rising 103 points, or 0.2%.
Seven of the eleven sectoral indices on the S&P 500 were trading in green led by materials and financials. IT and telecom stocks saw decline.
Oracle shares fell as much as 15% after the cloud computing company's fiscal second-quarter revenue missed analyst expectations. Analysts across Wall Street raced to lower their price targets after the company raised its spending forecast, heightening concerns about the company’s debt, as per reports.
Shares of artificial intelligence companies were also trading lower, including Nvidia and AMD, which were each down more than 2%.
The S&P 500 on Wednesday closed just a few points away from a new record after the Federal Reserve announced an interest rate cut for the third time this year and ruled out a rate hike.
US Treasuries rallied after the Fed rate cut was paired with the authorisation of fresh bill purchases to rebuild bank reserves, as per Bloomberg News. The 10-year note held gains after initial jobless claims rose more than expected in the Dec. 6 week, with the yield four basis points lower at 4.11%.
The US dollar weakened against major currencies. The Dollar Index dropped 0.5% to 98.25. The yen gained as much as 0.7%, and the euro rose 0.4%.
Spot gold rose 0.1% to $4,234.88 an ounce
Bitcoin fell more than 2% toward $90,000.
Oil prices fell to the lowest since October, dragged down by earlier losses in equities and other risk assets. International benchmark Brent fell to $61 a barrel in New York trading.
