The major averages reversed course once again as investors continue to rotate out of key artificial intelligence names, sparked by a report that Oracle’s primary investor pulled out of one of its data center projects. The Dow Jones Industrial Average fell 228 points, or 0.47%, to settle at 47,885 after being up over 200 points this morning. The S&P 500 fell 78 points or 1.1% to 6,721 while the Nasdaq Composite fell 418 points or 1.8%.

The selling in the tech space started with Oracle down 5% after the Financial Times reported that Blue Owl Capital’s plans to finance the cloud infrastructure company’s $10 billion Michigan data center fell through due to concerns about Oracle’s debt and spending levels. Another software stock, Palantir fell 5%. AI chip stocks did not fare much better. Nvidia fell 3%, Broadcom fell 4% and Micron was down 3% ahead of earnings. Not many tech stocks were higher.   

Defensive sector and a number of consumer staples were higher.

Interest rates were quiet today after pulling back yesterday due to weak economic data.

The yield on the 10-year Treasury rose a basis point to 4.15%. The 2-year Treasury yield rose a basis point as well to 3.48% while the 30-year Treasury bond yield held at 4.83%.

In the commodity space, oil rebounded up nearly 3% as President Trump moves to create a total blockade of sanctioned oil tankers leaving and entering Venezuela. Yesterday was a four year low for oil. Gold and silver performed well today up a percent and 5% respectively. Bitcoin follows the tech space, falling 2% today, negative for the year.

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