A day that featured the biggest initial public offering in four years also saw the Nasdaq Composite close sharply lower.
The tech-heavy index slid 1.8%. The S&P 500 dropped 1.1%. The Dow Jones Industrial Average fell 230 points, or 0.5%. The S&P and Dow extended their respective losing streaks to four days.
Struggles for the Nasdaq were in stark contrast to Medline, which surged in its debut on the tech-heavy index under the MDLN ticker. It raised $6.26 billion in the initial public offering, which makes it the largest U.S. IPO since Rivian raised $13.5 billion in November 2021.
Wall Street was once again in risk-off mode, selling recent winners such as artificial intelligence stocks and crypto firms. Oracle was among the big losers after The Financial Times reported Blue Owl Capital would not back the firm’s $10 billion Michigan data center. Oracle spokesperson Michael Egbert told Barron’s the report was not correct, noting development partner Related Digital “selected the best equity partner from a competitive group of options, which in this instance was not Blue Owl.
“Final negotiations for their equity deal are moving forward on schedule and according to plan,” Egbert said.
Still, Wall Street has been jumpy about AI stocks in recent months amid concerns about valuations and massive spending commitments.
“Another day, another flurry of negative AI headlines which is weighing on tech and the broader market,” Mizuho’s Daniel O’Regan told Barron’s. “A lot of tech tourists have jumped into the tech trade the last 18 months and recent vol somewhat confirms that and could potentially flush out weak hands.”
Despite the S&P’s drop, a majority of stocks in the index were actually trading higher for most of the day. Wall Street has quarterly results from Micron Technology after the close to look forward to, followed by the consumer price index for November on Thursday.