BTC, Nasdaq Futures Drop as Oracle Earnings Revive AI Bubble Fears

Core Viewpoint - Risk assets are under pressure due to Oracle's earnings miss and the Federal Reserve's hawkish guidance, impacting market sentiment across various sectors, including cryptocurrencies and technology stocks [1]. Company Summary - Oracle reported its fiscal second quarter 2026 earnings, with total revenue slightly below consensus expectations, driven by a decline in legacy software revenue and weak new license sales [2]. - The company is facing challenges with a significant increase in planned data center spending by $15 billion and a long-term debt rise to $99.6 billion, marking a 25% increase from the previous year [3]. - Cloud infrastructure revenue was reported at $4.1 billion, which fell short of expectations and indicates a reliance on debt expansion for growth [3]. Market Reaction - Following the earnings report, Oracle's shares dropped over 10% in after-market trading, negatively affecting AI stocks and contributing to bearish sentiment in the cryptocurrency market [4]. - The increase in Oracle's five-year credit default swaps (CDS) to the highest level since 2022 reflects a material repricing of risk, indicating heightened concerns about the company's financial stability [4]. - The CDS for Oracle, historically trading between 20-40 basis points, has surged to 117 basis points, suggesting a significant change in risk perception, although it does not indicate a distressed profile [5].