CNBC Daily Open: Concerns over Oracle's debt spill over into its projects
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In this article Taken from CNBC’s Daily Open, our international markets newsletter — Subscribe today The apprehension investors have surrounding Oracle has spilled over from manifesting in its stock price — which has fallen nearly 50% from its all-time high on Sept. 10 — to affecting its projects.Asset management firm Blue Owl Capital reportedly pulled out from Oracle's $10 billion data center project over unfavorable debt terms, according to the Financial Times, as concerns about the tech giant's high level of debt mount.The latest development adds fuel to worries that Oracle could delay the completion of data centers for OpenAI, which were first flagged by Bloomberg on Friday, though the cloud company has denied the report.Shares of Oracle fell 5.4% Wednesday, putting its month-to-date losses more than 11%. They weighed down related names, such as Broadcom Nvidia and Advanced Micro Devices. As a result, major U.S. indexes fell. The S&P 500 retreated 1.16% and the Dow Jones Industrial Average dropped 0.47%, while the Nasdaq Composite lost 1.81% in its worst day in nearly a month. Despite the recent pullback in artificial intelligence stocks, the Bank of America thinks "the AI trade may still have room to run into 2026" — with the important caveat that shares going up does not mean a bubble isn't forming. "In our view, such progression validates our thesis that a larger AI bubble continues to build," analysts at Bank of America wrote. The trouble, as always, is pinpointing the exact moment before the bubble pops — if that's even possible.— CNBC's Jaures Yip contributed to this report.Major U.S. indexes fall on AI weakness. The S&P 500 and Dow Jones Industrial Average had their fourth consecutive losing session. The pan-European Stoxx 600 closed flat, but the FTSE 100 gained 0.9% after data showed U.K. inflation cooling more than expected in November.Blue Owl Capital pulls out from Oracle project. Concerns over the cloud company's debt prompted Blue Owl to back out from funding a $10 billion data center Oracle is building for OpenAI, reported the Financial Times. Magnum is 'destroying' Ben & Jerry's, co-founder says. Ben Cohen, one half of the eponymous Ben & Jerry's, said Magnum's statements about its governance changes are "Orwellian." Magnum is the parent of Ben & Jerry's, among other ice cream brands.Micron forecasts surging revenue. The firm expects about $18.70 billion of revenue in the current quarter, compared with $14.20 billion expected by LSEG, on the back of high demand for memory chips. Micron also beat expectations for fiscal first-quarter earnings.[PRO] One chart is worrying Michael Burry. "The Big Short" investor pointed to a graphic produced by Wells Fargo that showed a phenomenon in U.S. households that has only happened twice before and preceded bear markets that "lasted years."Three holds and a cut? Europe's central banks are about to make their final calls of 2025Investors are gearing up for the last interest-rate decisions of 2025, with four of Europe's central banks announcing their monetary policies and macroeconomic outlooks on Thursday.The European Central Bank, Bank of England, Riksbank and Norges Bank are all meeting, but only one of them is expected to change its rate.— Holly Ellyatt and Annette WeisbachGot a confidential news tip? We want to hear from you.Sign up for free newsletters and get more CNBC delivered to your inboxGet this delivered to your inbox, and more info about our products and services.© 2025 Versant Media, LLC.
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