Oracle's AI data-center woes are dragging the entire stock market lower

Core Viewpoint - The US tech sector is experiencing pressure due to concerns surrounding Oracle's planned $10 billion data center for OpenAI, with reports indicating that Blue Owl Capital will not provide funding for the project [1][3][6] Group 1: Market Reaction - Oracle shares fell as much as 6% on Wednesday, contributing to a decline in the tech-heavy Nasdaq Composite, which shed more than 1% [1][2] - There is a broader rotation occurring in the market, moving away from expensive tech stocks towards smaller-cap and value stocks, as noted by LPL Financial's chief technical strategist [2][3] Group 2: Oracle's Situation - Reports indicate that negotiations between Oracle and Blue Owl Capital have stalled due to concerns over Oracle's significant AI spending and increasing debt levels [3][6] - Oracle has disputed the Financial Times report, asserting that negotiations for the data center are proceeding as planned and that the development partner selected a different equity partner [4][6] - Despite an aggressive revenue forecast that initially impressed investors, Oracle's stock has declined 45% from its peak in early September, raising concerns about the company's debt in the AI sector [5]