Markets slump as AI trade tumbles
Tech dragged US stocks lower, especially the Nasdaq 100.
Stocks fell on Wednesday driven by concerns around AI credit risk, which seemed to swell following a report that Blue Owl Capital won’t fund Oracle’s $10 billion Michigan facility. In response, Oracle told Bloomberg that negotiations for that data center project are “on schedule,” but that did little to quell investor fears.
Every member of the Magnificent 7 fell. The pessimism around the AI trade also dragged down Broadcom, AMD, and retail favorite CoreWeave, to name just a few.
The S&P 500 finished down over 1%, the Nasdaq 100 dropped nearly 2%, and the Russell 2000 dipped roughly 1%.
Stocks that moved higher:
Netflix ticked a little higher after Warner Bros. Discovery’s board told shareholders to turn down Paramount Skydance’s “inadequate” hostile bid.
Reddit rose following a Piper Sandler note that said the platform’s monthly active users metric has gained for six months straight and predicted continued momentum for 2026.
Stocks that moved lower:
Joby Aviation dipped after announcing plans to double its air taxi manufacturing to four aircraft per month by 2027.
Reuters reported that China has completed a factory-sized prototype of an EUV chip fab, sending ASML lower, as it could threaten the company’s unique position in the AI race.
