The Dow Jones Industrial Average surged by more than 400 points on Thursday, extending its upward trajectory and reflecting strong momentum in several blue-chip and industrial sectors.
However, this broad market optimism was tempered by a pronounced drag from the technology space, led by a sharp sell-off in Oracle.
The company’s shares fell in the range of 14-15 percent after it reported quarterly results that failed to meet market expectations and issued guidance that raised fresh concerns about the sustainability of its current investment cycle.
Oracle’s announcement of significantly higher capital spending toward AI infrastructure intensified investor caution, with markets questioning whether such heavy investment would translate into proportional revenue gains in the near term.
This downturn in Oracle rippled across the technology segment, weighing on both the Nasdaq and the S&P 500.
Tech and AI-linked stocks retreated as traders reassessed valuations that had been driven up through the year on optimism around artificial intelligence demand.
The contrasting movements created a clear divergence in market sentiment: while traditional sectors buoyed the Dow to notable gains, the tech-heavy indices struggled to keep pace.
The day ultimately underscored the market’s sensitivity to earnings outlooks and the pressure on major tech players to justify elevated spending in a rapidly evolving AI landscape.