Why is Oracle stock crashing today at NYSE, Wall Street? Check reason behind ORCL share price bloodbath on Thursday

Oracle Stock is crashing today at New York Stock Exchange (NYSE) as ORCL share price was down by over five per cent to USD 137 in the ongoing trading. With this AI stocks are facing fresh scrutiny following Oracle's decision to protect itself against potential delays in the construction of a data center in New Mexico.

Oracle lost 5.5 per cent after a report said the company sent a 'force majeure' notice to a New Mexico data center. Shares of Blue Owl, the project's developer, also fell 5 per cent.

Oracle Stock Today


Oracle is seeking to protect itself from potential cost increases related to a large data center project in New Mexico by sending a "force majeure" notice to developer Blue Owl, Bloomberg News reported on Thursday. Shares of the company fell around 4 per cent in premarket trading after the report, which cited sources familiar with the matter. Reuters could not independently verify it.

Oracle is aiming to delay payments should the data center dubbed Project Jupiter get derailed and fail to come online in 2028 as planned, rather than exiting as the main tenant, according to the report. Companies typically invoke force majeure to free themselves from contractual obligations when problems arise beyond their control.

Wall Street Trading

During the morning trade, the Dow Jones Industrial Average was down 208.36 points, or 0.40 per cent, at 51,303.23; the S&P 500 lost 24.04 points, or 0.30 per cent, to 7,681.99 and the Nasdaq Composite fell 159.54 points, or 0.58 per cent, to 26,778.64.

Six of the 11 sectors on the benchmark index were trading lower, while the energy sector gained 1 per cent. The CBOE Volatility Index, sometimes referred to as Wall Street's fear gauge, climbed to a one-week top of 15.7 points.

Meta Platforms, which has been in focus for its Muse consumer AI agent, on Wednesday launched Charm, a handheld gadget for using Muse. The social media giant's shares climbed 1.1 per cent. Among other movers, MGM Resorts slumped 10 per cent after media mogul Barry Diller's People Inc withdrew its proposal to purchase the casino operator.

New York Fed President John Williams, who has a vote on the Federal Open Market Committee, underlined those expectations. It was reasonable to think that rates might need to be raised again this year, he said. A report on weekly jobless claims fell last week, pointing to a firming labor market.

The focus this week has also been on Meta after its consumer AI agent Muse split Wall Street into winners and losers. The social media giant on Wednesday launched Meta Charm, a small handheld gadget for using Muse.

Movers before the bell included MGM Resorts, which dropped 10 per cent after media mogul Barry Diller's People Inc withdrew its proposal to purchase the casino operator.

Darden Restaurants dropped 2 per cent after the Olive Garden parent missed first-quarter sales and profit estimates.