Stocks Take a Hit as AI Fears Settle In
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Photographer: Michael Nagle/Bloomberg
Stocks took a turn for the worse Wednesday as doubts in tech darlings and artificial intelligence outlays manifested in declines across the board. The rout hits amid growing suspicion that the mother of all bubbles may be ready to pop. Magnificent Seven pole sitter Nvidia led declines among the megacaps as the S&P 500 fell 1.2% and the Nasdaq slid 1.8%.
Even the slightest hint of trouble around data centers is enough to spook investors banking on the AI boom, and there was more than a hint today. AI canary Oracle coughed up some coal dust in the form of financing issues around a data center in Michigan. It turns out that Blue Owl Capital, a longtime partner in the company’s AI infrastructure build-out, is not contributing equity. Oracle plunged about 5.4%.