Wall Street’s main indexes fell on Wednesday, with the S&P 500 and Nasdaq sinking to three-week lows as lingering concerns about funding artificial intelligence weighed on technology stocks.
Oracle closed lower after a report indicated that the company’s largest data center partner, Blue Owl Capital, will not back a $10 billion deal for its next facility.
Among large technology companies, Amazon.com fell after it was learned that it is in talks to invest about $10 billion in ChatGPT maker OpenAI.
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Fears that the broader tech sector will turn to debt to try to achieve its AI goals have hit risk-taking on multiple occasions this quarter. Nvidia, a benchmark in AI, also dropped.
According to preliminary closing data, the S&P 500 index lost 78.52 points, or 1.15%, to 6,722.22 points, the Nasdaq Composite lost 415.97 points, or 1.80%, to 22,695.50 units and the Dow Jones Industrial Average fell 225.85 points, or 0.47%, to 47,888.41 units.
In the latest news on who could take control of Warner Bros. Discovery, the media company’s board rejected Paramount Skydance’s $108.4 billion hostile bid, favoring Netflix’s binding offer.
Netflix shares rose%, while Paramount and Warner Bros. fell.
Alphabet shares fell after a Reuters report said its Google unit is undertaking a new initiative to erode Nvidia’s lead in software, working with Meta.
With information from Reuters.
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