CNBC Daily Open: Oracle's debt seems to be affecting data center funding

Core Viewpoint - Investor apprehension surrounding Oracle has led to a significant decline in its stock price, which has fallen nearly 50% from its all-time high on September 10, and is now affecting its projects [1] Group 1: Oracle's Financial and Project Concerns - Asset management firm Blue Owl Capital has reportedly withdrawn from Oracle's $10 billion data center project due to unfavorable debt terms, raising concerns about Oracle's high level of debt [1] - There are worries that Oracle could delay the completion of data centers for OpenAI, although the cloud company has denied these reports [2] Group 2: Market Impact - Oracle's shares fell 5.4% on Wednesday, contributing to month-to-date losses exceeding 11%, which also negatively impacted related companies such as Broadcom, Nvidia, and Advanced Micro Devices [2] - Major U.S. indexes experienced declines, with the S&P 500 retreating 1.16%, the Dow Jones Industrial Average dropping 0.47%, and the Nasdaq Composite losing 1.81%, marking its worst day in nearly a month [3] Group 3: AI Market Outlook - Despite the recent pullback in artificial intelligence stocks, Bank of America suggests that the AI trade may still have potential for growth into 2026, with a caution that rising shares do not preclude the formation of a bubble [3] - Analysts at Bank of America believe that the current market progression supports the thesis of a larger AI bubble continuing to build, although identifying the exact moment before a potential bubble burst remains challenging [4]