Wall Street started Wednesday in a decent mood, then thought better of it.
The Nasdaq finished the day down 1.81%, leading losses as tech stocks took another hit. The S&P 500 closed 1.16% lower, while the Dow Jones Industrial Average slipped 0.47%. Any early optimism evaporated as the session wore on and familiar worries crept back in.
Investors spent the day arguing with the November jobs report. On the surface it looked solid, but solid is the problem. Employment is not weakening fast enough to give the Federal Reserve a clear green light to move quickly on rate cuts. That leaves markets stuck between hope and hesitation, with Thursday’s inflation data now doing most of the heavy lifting.
Fed governor Chris Waller added fuel to the discussion, saying there is still room to cut rates, pointing to a possible 50 to 100 basis points. It was enough to keep expectations alive, but not enough to calm nerves.
Tech stocks did most of the damage. Oracle shares slid nearly 6%, dragging sentiment across the sector after reports suggested financing had fallen away from its planned $10bn data centre project. The move struck a nerve, not because of one project, but because it fed growing discomfort about how aggressively tech companies are borrowing to fund AI infrastructure while demand remains hard to pin down.
The sell-off was less about Oracle itself and more about what it represents. Investors are starting to question whether the AI build-out is racing ahead of proven returns.
That makes Micron Technology’s results later today especially relevant. As part of Nvidia’s server supply chain, its update could help ground the AI story in actual demand rather than projections.
Away from tech, Netflix shares edged higher after Warner Bros Discovery urged shareholders to reject a rival bid from Paramount Skydance, casting doubt over the reliability of its funding.
