U.S. stocks fell sharply Wednesday as renewed concerns over artificial intelligence spending and debt financing sparked a broad sell-off in technology shares, dragging major indexes lower by the close.
The Nasdaq Composite dropped nearly 1.8%, leading losses as investors fled high-growth tech names. The S&P 500 slid about 1.1%, while the Dow Jones Industrial Average fell roughly 0.5%.
Tech Leads Market Lower
Selling intensified after a Financial Times report said Oracle’s $10 billion AI data center project lost backing from private lender Blue Owl Capital, reviving worries that the AI boom is being built on heavy leverage.
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Oracle (ORCL) plunged 5.4%
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Nvidia (NVDA) fell nearly 4%
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Broadcom (AVGO) dropped more than 4%
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Tesla (TSLA) slid 4.6%, retreating from record highs
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Alphabet (GOOG) lost over 3%
AI-linked infrastructure stocks were also hit. GE Vernova (GEV) sank more than 10% as investors questioned valuations tied to future data-center demand.
Winners Buck the Trend
Despite the market slump, select stocks posted strong gains.
Micron Technology (MU) surged as much as 7% in after-hours trading after beating earnings expectations and issuing an upbeat revenue forecast, citing strong demand from AI data centers.
Newly public Medline (MDLN) jumped over 40% in its market debut, marking one of the strongest IPO openings of the year.
Shares of Hut 8 (HUT) climbed nearly 9% after the company announced a $7 billion long-term lease to develop AI-focused data center infrastructure.
Safe Havens Rise
As equities sold off, investors moved into defensive assets. Gold hovered near record highs, while silver jumped about 5%, fueled in part by short covering. Bitcoin slipped nearly 2%, trading around $86,000.
Focus Turns to Fed and Inflation
Markets continue to search for clarity on interest rates. Fed Governor Chris Waller said the central bank may still have room to cut rates by 50 to 100 basis points, though investors are awaiting Thursday’s consumer inflation report for confirmation.
