Tech Fatigue Drags Wall Street Indices to Three-Week Lows

Wall Street's main indexes fell as technology stocks, including Oracle and Nvidia, declined. Concerns over tech valuations and AI funding challenges impacted market sentiment. Meanwhile, Netflix gained as it became a top contender for Warner Bros Discovery. Energy stocks surged amid geopolitical tensions affecting oil prices.

Wall Street experienced a downturn on Wednesday, with key indexes hitting three-week lows. The decline was led by heavyweight technology stocks underperforming as investors questioned Oracle's data center funding prospects.

Oracle shares plummeted by 5% after Blue Owl Capital chose not to support a $10 billion deal for a new data facility. This sparked widespread doubts about the tech sector's ability to finance its artificial intelligence ambitions. The Dow Jones, S&P 500, and Nasdaq all registered significant losses, with technology being the hardest hit sector.

Moreover, Netflix emerged as a prominent player in potential acquisition dealings, boosting its shares, while energy stocks performed well due to rising crude prices. Despite these developments, the Federal Reserve hinted at potential interest rate cuts, offering some hope to investors.

(With inputs from agencies.)