Nasdaq Index: Oracle Plunge Tests AI Spending as Yields Hit 2007 High

Oracle (ORCL) sent a force majeure notice to Stack Infrastructure regarding Project Jupiter, a New Mexico data center, due to potential delays. Oracle seeks to defer payments if the 2028 opening is missed. The project, financed by 20 banks with an $18B loan, is part of the Stargate AI infrastructure initiative. ORCL shares fell 4% premarket, along with other involved companies. The notice highlights execution risks for Oracle's AI projects.

Oracle shares dropped 4% after sending a force majeure notice for its $18B Project Jupiter data center, seeking cost protection if delayed. The project faces financing pressure, with loans quoted at 89-91 cents on the dollar. Oracle reported Q1 FY2027 revenue of $19.3B, up 30%, with cloud infrastructure revenue doubling. The company has $125B in borrowings and $288B in lease commitments for data centers. Oracle aims to raise $40B in FY2027 via debt and equity.

Oracle sent a force majeure notice to Blue Owl Capital regarding Project Jupiter, an AI data center in New Mexico, but stated the project remains on schedule. Blue Owl confirmed the notice but said financial commitments remain unchanged. Oracle shares fell 4% amid concerns about AI infrastructure expansion. Analysts noted increased risk of delays, which could impact revenue. Oracle's Q1 capital expenditures were $28.5B, with a forecast of $90B-$95B for fiscal 2027.

Oracle (ORCL) shares fell 3.6% after sending a force majeure notice to the developer of its New Mexico data center, Project Jupiter, delaying payments if the 2028 completion is missed. The facility is part of Oracle's AI infrastructure and has faced regulatory and environmental hurdles. Oracle affirmed the project is on schedule and won't impact fiscal 2027 guidance. The stock is down 28.6% YTD, trading at $139.59.

U.S. stock indexes fell Thursday, with the Nasdaq down 0.8%, Dow 0.6%, and S&P 500 0.5%. The 30-year Treasury yield hit 5.446%, its highest since 2004. Oracle dropped 5% due to data center delays, while Meta rose 3.1% on AI-driven price target upgrades. U.S.-China trade truce extended by two months.

Oracle's credit default swaps hit record highs, with its 2056 bond yield exceeding 8%. The company sent a force majeure notice for its New Mexico data center, causing its stock to drop 5%. Broader tech and AI sector CDS spreads also widened amid rising borrowing costs and U.S. Treasury yield surges, according to Zerohedge.