Wednesday's session on Wall Street ended with declines in the main indexes, and investors continue to turn away from companies related to artificial intelligence, after the main investor Oracle withdrew from one of the data center projects. The S&P 500 fell for the fourth day in a row.
The Dow Jones Industrial dropped 0.47 percent at the close. and amounted to 47,885.97 points. The S&P 500 fell by 1.16% at the end of the day. and amounted to 6,721.43 points. The Nasdaq Composite fell 1.81%. up to 22,693.32 points The Russell 2000 mid-cap index is down 1.07%. up to 2,492.3 points The VIX index increases by 6.92%. up to 17.62 points
During Wednesday's session, Oracle shares fell 5.4%. after the Financial Times reported that Blue Owl Capital's plans to finance a $10 billion data center in Michigan had fallen through, with people familiar with the matter pointing to concerns about Oracle's debt and spending.
Risky financing programs related to companies' plans to build data centers have kept investors on edge in recent weeks. Other stocks related to AI trading also fell. Chipmaker Broadcom lost 4.5%, Nvidia fell 3.8% and Alphabet, the owner of Google, fell 3.2%.
“We've definitely seen a pretty clear rotation from large growth stocks to large value stocks and we see people positioning themselves more defensively about what's going to happen next year,” said Brian Mulberry, client portfolio manager at Zacks Investment Management. – The real question that will be asked is: Who will monetize these very large investments in AI? – he added.
Oracle and Broadcom, along with other AI stocks, suffered significant losses in December as investors shifted to value-oriented areas of the market such as financials.
Mulberry expects the rotation from highly valued companies to “more fairly valued sectors” to continue into 2026. He believes this trend — along with uncertainty around monetary policy — could create some volatility.
– At this stage, it will be important to consider specific subsets of factors to determine when and where this point of AI profitability will occur, and these include factors such as free cash flow. You can fake the balance sheet, but you can't fake free cash flow, he said.
Artificial intelligence trading is on track to cause a stock market bubble, but that doesn't mean AI stocks don't have more room to grow in 2026, say Bank of America Global Research analysts.
US crude oil inventories last week fell by 1.274 million barrels, or 0.3 percent, to 424.417 million barrels. Gasoline stocks increased by 4.808 million barrels, or 2.18 percent, to 225.627 million barrels during this time.
Reserves of distillate fuels, including heating oil, increased by 1.712 million barrels, or 1.47%, to 118.5 million barrels.
On the oil market, WTI contracts for January are up 2.99%. to USD 56.92 per barrel, and February Brent futures increase by 2.94%. up to USD 60.65/b. (PAP Business)
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