Topline
Major AI stocks slumped in premarket trading early on Thursday, led by an 11% decline in Oracle’s share price after the cloud computing giant released quarterly earnings on Wednesday that missed analysts’ expectations.
Oracle shares are down more than 11% in the premarket on Thursday.
AP2007
Key Facts
In premarket trading early on Thursday, Oracle’s stock slumped to $197.33, down more than 11.5% from Wednesday’s market close.
Shares of Nvidia, the top AI chipmaker, dropped around 1.6% to $180.80 in early trading, while rival AMD’s shares fell 1.73% to $217.60.
Chipmakers Broadcom, Qualcomm, and Intel, were also affected by the selloff, with their shares falling 1.74%, 1.09%, and 1.47%, respectively.
Other key AI stocks, Microsoft, Meta, Google and Amazon, dropped 0.70%, 1.16%, 0.6% and 0.8% respectively.
The tech-heavy Nasdaq futures index dropped to 25,599.25 points, down 0.78% early on Thursday morning, while the benchmark S&P futures index fell 0.56% to 6,852.75 points.
Tangent
The market slump comes despite the Federal Reserve’s decision to lower interest rates by a quarter-point to between 3.5% and 3.75%, down from 3.75% and 4%. The central bank forecasts suggest there could be another quarter-point interest rate cut in 2026, followed by one more in 2027. Bloomberg also reported that investors have dialed down their expectations for further rate cuts in 2026 from three to two. The markets were initially buoyed by the rate cuts, with the S&P 500 closing nearly 0.7% up at 6,886.68 points, just shy of an all-time high.