Oracle posted a record quarter, yet a surge in AI capital spending deepened the tech selloff heading into tonight's session.
Wall Street closed sharply lower on Wednesday. The Nasdaq led the decline, down 1.98%, as the chip and AI trade unwound.
The trigger was Oracle (ORCL). Shares dropped more than 7% after hours despite record revenue and cloud growth. The reason was capital spending guidance well above what the market expected.
At the same time, a second wave of US strikes on Iran lifted oil and pushed investors toward safety. That combination is shaping the tape tonight.
| Stock | Movement | What to Watch |
|---|---|---|
| ORCL | Down 7%+ after hours | Record revenue, but AI capex sparks margin worries |
| XOM | Lifted by oil +2% | Middle East risk premium; energy as a risk-off hedge |
| CVX | Lifted by oil +2% | Sensitive to WTI pushing back above US$90 |
| NVDA | Pressured by chip selloff | AI sentiment barometer; data-center capex headlines hit it directly |
| MRVL | Pressured, but joining S&P 500 | Index inclusion could cushion the sector correction |
| MU | Pressured by chip selloff | Memory is an AI-demand proxy; volatile on sector news |
Oracle's capital spending is the main story. The market reads the heavy AI infrastructure commitment as a near-term margin drag. Investors are now asking when that scale of investment starts to pay off. The read-through hits Nvidia (NVDA) and other data-center names.
Adobe (ADBE) reports after the US close tonight. The stock is down about 30% this year, so the print is a live test of the thesis that AI eats creative software.
Geopolitics stays dominant. The US strikes on Iran lifted oil about 2% and benefit Exxon Mobil (XOM) and Chevron (CVX).
In chips, Marvell (MRVL) is set to join the S&P 500. Meanwhile, China's indium-phosphide export curbs add supply risk to the data-center chain.
US futures lean lower on tech pressure and geopolitical caution. The major indexes fell together in the prior session: the S&P 500 dropped 1.62% and the Dow lost 1.87%. Energy was the relative exception, supported by higher oil. The focus is on chip names and Oracle's follow-through once the regular session opens.
WTI is back above US$90 (up 2%), while gold pulled back about 2% after a long run. The 10-year Treasury yield holds at 4.52%, and the rupiah gained almost 1% as local sentiment improved.
Tonight is about balance. Oracle's capex shock tests risk appetite for AI, while higher oil offers a hedge in the energy sector.
Watch ORCL, the chip reaction, and Adobe's print as the direction-setters for the session. What stocks are you watching tonight?
Disclaimer
Gotrade is the trading name of Gotrade Securities Inc., which is registered with and supervised by the Labuan Financial Services Authority (LFSA). This content is for educational purposes only and does not constitute financial advice. Always do your own research (DYOR) before investing.
