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Micron Earnings in Focus Amid AI Semiconductor Demand Concerns
U.S. equities fell on Wednesday as investors assessed how recent economic data might influence the Federal Reserve’s interest rate policy. Technology stocks faced notable pressure, with Oracle (ORCL) declining sharply after a major AI project faced funding challenges.
The Nasdaq Composite (^IXIC) dropped approximately 1.8%, leading a tech-heavy sell-off into the market close. The S&P 500 (^GSPC) slipped over 1%, reflecting renewed weakness in technology shares, while the Dow Jones Industrial Average (^DJI) fell roughly 0.5% following a mixed session on Tuesday.
Oracle AI Project Faces Setback
Concerns over AI investments intensified after a Financial Times report revealed that Oracle’s $10 billion data center initiative had lost backing from private lender Blue Owl Capital. The news fueled broader market scrutiny over tech companies’ reliance on debt and off-balance-sheet financing to fund capital spending on AI infrastructure, especially amid lingering questions about demand for such projects.
“Investors are closely monitoring how tech firms fund AI expansion, given uncertainties in revenue growth,” analysts noted.
Oracle shares fell nearly 6%, while other megacap tech stocks followed suit. Nvidia (NVDA) declined almost 4%, Broadcom (AVGO) slid over 4%, and Google (GOOG) lost more than 3%. This broad tech downturn contributed to the overall market decline.
Spotlight on Micron Technology
The market is now turning attention to Micron Technology (MU), which is scheduled to report quarterly results after Wednesday’s close. The semiconductor company supplies chips for Nvidia’s server systems, and its report is expected to offer insights into AI-driven semiconductor demand. Analysts believe Micron’s earnings could serve as a barometer for broader tech hardware sentiment, particularly for AI infrastructure.
Investors Digest Noisy Economic Data
Beyond corporate earnings, investors have been navigating a data vacuum in the labor market, attempting to interpret November’s mixed employment figures. Nonfarm payrolls showed modest gains following a sharp October decline, while the unemployment rate rose to its highest level in years.
“The mixed labor report makes it challenging to forecast the Fed’s next policy steps,” market observers said.
Attention now shifts to Thursday’s consumer inflation update for November, which could provide further clarity on the Federal Reserve’s approach to interest rates in 2026. Fed governor Chris Waller suggested that the central bank still has room to adjust rates, hinting at 50 to 100 basis points of potential easing.
Elsewhere in corporate news, Netflix (NFLX) shares advanced after Warner Bros. Discovery (WBD) urged shareholders to reject a rival acquisition proposal from Paramount Skydance (PSKY). The board questioned the rival’s funding guarantees, giving Netflix a positive boost in an otherwise weak market environment.
“Corporate governance and strategic decisions continue to influence sector-level performance,” analysts said.
