Oracle(US:ORCL) Zheng Quan Shi Bao Wang·2025-12-12 00:46Group 1 - The core viewpoint of the news is that the U.S. stock market is experiencing a significant shift, with a sharp sell-off in technology stocks, particularly Oracle, which saw a drop of over 16% during trading due to disappointing cloud revenue and substantial capital expenditure plans [1][3] - Oracle's second fiscal quarter report revealed adjusted revenue of $16.1 billion, below market expectations of $16.21 billion, and cloud sales grew by 34% to $7.98 billion, also slightly below forecasts [3] - The market is reacting to concerns about the return on investment in AI and the risks associated with debt financing, leading to a rotation of funds from tech stocks to cyclical and value sectors, pushing the Dow Jones and S&P 500 to record highs [1][6] Group 2 - Following Oracle's report, the stock market saw a widespread decline in chip-related tech stocks, with companies like Arm, Intel, and Nvidia experiencing significant drops [4] - The CEO of Oracle, Clay McGork, addressed concerns about high capital expenditures, stating that the company expects to raise less than the previously estimated $100 billion for AI project funding [4] - Analysts suggest that the market's concerns regarding Oracle and the overall AI investment landscape are justified, as companies have committed trillions to AI, but the outcomes remain uncertain [4] Group 3 - The Federal Reserve's recent decision to lower the benchmark interest rate by 25 basis points has influenced market sentiment, with investors interpreting the Fed's stance as cautious regarding inflation while acknowledging weak employment [6][7] - The market is currently focused on a rotation towards small-cap and cyclical stocks, indicating a bet on a rebound in global economic growth [6] - Future expectations suggest that the Fed may continue to lower rates in 2026, with a potential pause in January and the next rate cut possibly occurring in March [7]