Closing Bell: Markets Slide as A.I. Jitters Weigh on Investors

Key Points

• Broad-based selling in A.I.-linked stocks, following Broadcom commentary.
• Oracle fell 4.47% after reports of possible OpenAI data center delays, despite company assurances that contractual milestones remain on track.
• LULU surged 9.6% after beating earnings expectations and offering a more optimistic outlook, with investors looking past recent competitive and margin pressures.

Markets moved sharply lower today as fallout from Broadcom’s conference call and reports that Oracle may delay OpenAI data center projects by up to a year triggered heavy selling across A.I.-related stocks. The S&P 500 (SPX) finished down 1.07%, the Nasdaq-100 (NDX) slid 1.91%, and the Russell 2000 (RUT) fell 1.51%. Consumer Staples, Health Care, and Materials were the leading sectors, while Information Technology and Energy lagged.

Oracle Data Center Report Shakes A.I. Stocks

Oracle shares came under pressure after Bloomberg News reported that the company may be delaying portions of its OpenAI data center buildout. In response, an Oracle spokesperson pushed back on the report, stating, “There have been no delays to any sites required to meet our contractual commitments, and all milestones remain on track.” Despite the rebuttal, Oracle shares closed the session down 4.47%.

Lululemon Athletica Rallies Post-Earnings

Lululemon Athletica (LULU) reported earnings Thursday evening that exceeded market expectations, offering a more optimistic outlook for the company’s future. Positive sentiment was also supported by the announcement that CEO Calvin McDonald will step down following his seven-year tenure. While the company has faced increasing pressure over the past year from competition, margin challenges, and other operational headwinds, investors focused on the improved outlook. Lululemon shares finished the session up 9.6%.

Key Market Events for Monday

• 08:30 AM ET: Empire State Manufacturing Index
• 09:30 AM ET: FOMC Member Miran Speaks
• 10:00 AM ET: NAHB Housing Market Index
• 10:30 AM ET: FOMC Member Williams Speaks
• 11:00 AM ET: FOMC Member Miran Speaks

Notable Earnings for Monday

• Premarket: N/A
• Postmarket: N/A