New York — Most US stocks rose on Thursday, but a decline in Oracle stock is holding back Wall Street, as investors question whether its big spending on artificial intelligence technology will pay off.
S&The P 500 index fell 0.4% in early trading and was just shy of its all-time high, set in October. The Dow Jones Industrial Average was up 233 points, or 0.5%, as of 9:35 a.m. ET, and the Nasdaq Composite was down 0.7%.
Oracle was one of the biggest heavyweights in the market and was down 14.5% even though it reported better earnings last quarter than analysts expected. Its revenue growth of 14% came in slightly below expectations.
Doubts also remain about whether all of Oracle’s spending on AI technology will lead to the increased profits and productivity that proponents promise. Analysts said they were surprised by how much Oracle might spend on AI investments this fiscal year, and questions remain about how the company will pay for it.
Such doubts weigh heavily on me Artificial intelligence industry On a massive scale, even as billions of dollars continue to flow. It helped drag the US stock market through some sharp and scary swings last month.
Nvidia, the chip company that has become the poster child of the AI ​​boom and brings in nearly $20 billion a month, fell 2.8% on Thursday. It was the heaviest weight on S&p. 500.
Oracle CEO Larry Ellison said it will continue to buy chips from Nvidia, but now has a “chip agnostic” policy, where it will use “any chips our customers want to buy. There will be a lot of changes in AI technology over the next few years and we must remain flexible in responding to those changes.”
However, most US stocks rose, thanks in part to easing Treasury yields in the bond market. The yield on the 10-year Treasury note fell to 4.10% from 4.13% on Wednesday and from 4.18% on Tuesday.
Lower Treasury yields mean that U.S. government bonds pay less in interest, which may encourage investors to pay higher prices for stocks and other types of investments.
Revenues fell after a report said that the number of U.S The number of workers applying for unemployment benefits jumped last week by more than economists expected. This is a possible indicator of higher layoff rates.
The previous day, yields had fallen further The Federal Reserve lowered its key interest rate For the third time this year, he indicated there could be another cut in 2026. Wall Street likes low interest rates because they can boost the economy and raise investment prices, even if they are likely to worsen inflation.
The Walt Disney Company was among the strongest gainers in the market. It rose 2.1% after OpenAI announced a three-year agreement that will allow it to use more than 200 Disney, Marvel, Pixar and Star Wars characters to create short, user-requested social videos. Disney is also investing $1 billion in OpenAI.
Elsewhere on Wall Street, Oxford Industries fell 15.1% after the company behind Tommy Bahama and Lilly Pulitzer said its clients are looking for bargains and are “value-driven.” CEO Tom Chubb said the start of the holiday shopping season was weaker than the company expected, and it lowered its full-year revenue forecast.
Meanwhile, Vera Bradley stock fell 26% after it reported a larger-than-expected loss.
In overseas stock markets, indices rose in Europe after falling in most parts of Asia.
Japan’s Nikkei 225 index fell 0.9%, dragged down by a sharp decline in SoftBank Group Corp, a major investor in artificial intelligence.
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AP writers Teresa Cirugano and Matt Ott contributed.