Latest Finance-Economy News
Oracle Stock Plunges 45% from Peak on AI Data Center Costs and Debt Burden
Oracle's shares dropped 14% this week after reporting $12 billion in quarterly capital expenditures, exceeding expectations, highlighting limits of AI boom due to physics and debt markets. The company has $100 billion in debt after major bond issuances like $18 billion in September, making it more leveraged than peers like Google and Microsoft.
Experts note a shift to debt financing for AI infrastructure among hyperscalers, issuing $121 billion in bonds this year.
Tech Selloff Drags Nasdaq Down 1.7%, S&P 500 Worst Day in 3 Weeks
Wall Street fell sharply with Nasdaq dropping 1.7%, S&P 500 down 1.1% to 6,827.41, and Dow losing 0.5% or 245 points after records. AI stocks led declines: Nvidia fell 3.3%, Oracle another 4.5%, Broadcom weighed heavily on S&P.
Rising 10-year Treasury yield to 4.18% pressured valuations amid concerns over expensive stocks.
Federal Reserve Cuts Rates by 25 bps to 3.50%-3.75%, Signals Potential Pause
The Fed delivered its third consecutive rate cut, lowering the target range, but indicated a possible pause ahead. This move supports economy amid cooling inflation but reflects caution on further easing.
Markets reacted mixed, with tech sensitive to rate outlook.
Silver Surges to Record Highs Near $64/Ounce, Up 120% YTD
Silver hit near-record $64 per ounce, its strongest year since 1979 with 120% gains, outperforming amid precious metals rally. Gold and silver mining stocks led Wall Street sectors.
Rally persists despite broader market pressures.
Michigan Auto Stocks Rally: GM Hits $81, Ford Up 6% to $13.80
General Motors reached new highs near $81 per share with strong monthly gains; Ford climbed 6% to $13.80, buoyed by sector momentum. Automotive stocks in Michigan maintained robust performance amid economic uncertainty.
This contrasts with tech declines.
Broadcom Tumbles 10.8% Despite Strong AI Revenue Growth
Broadcom fell sharply as the heaviest S&P 500 weight despite solid quarterly profit and 74% AI semiconductor revenue growth. CEO highlighted AI as key driver, but market punished post-earnings.
Nvidia and Oracle also declined in AI pullback.
Ferrovial Joins Nasdaq-100 Index in Global Growth Milestone
Infrastructure giant Ferrovial was added to the Nasdaq-100, marking a key step in its international expansion. Announcement from Amsterdam underscores company's rising prominence.
Boosts visibility among top non-financial Nasdaq firms.
10-Year Treasury Yield Climbs to 4.19%, Pressuring Stock Valuations
Bond market yields rose to 4.19% from 4.14%, making stocks less attractive especially high-valuation tech names. Higher yields signal rate pause expectations post-Fed cut.
Contributed to Wall Street's worst session in weeks.
Dow Outperforms with 1% Weekly Gain, Less Tech Exposure Helps
Dow Jones rose 1% for the week despite Friday drop, faring better than Nasdaq's 1.6% loss due to lower tech weighting. Non-tech like Chipotle up 3.6%, McDonald's 2.3%, Norwegian Cruise 1.5%.
Shift from AI darlings to value stocks evident.
Lululemon Surges 9.6% on Strong Earnings, CEO to Step Down
Lululemon jumped 9.6-9.7% after beating profit and revenue expectations for Q3 through Nov. 2. CEO Calvin McDonald plans exit end-January amid revenue pressure.
Biggest S&P 500 gainer amid tech rout.
Asian Markets Rally: Hong Kong +1.7%, Tokyo +1.4%; Europe Dips
Hong Kong and Tokyo stocks gained 1.7% and 1.4% respectively, leading global advances. European indexes fell modestly after Asia's strong close.
Reflects mixed sentiment post-U.S. tech selloff.