United States benchmarks closed lower on Tuesday (Wednesday AEDT), closing below recent record highs as a sell-off in Oracle shares weighed on technology stocks and investors grew increasingly concerned about Washington’s continuing government shutdown.
The Dow Jones Industrial Average slipped 92 points or 0.2% to 46,603.0. The S&P 500 fell 25.7 points or 0.4% to close at 6,714.6, while the Nasdaq Composite dropped 153.3 points or 0.7% to finish at 22,788.4.
Oracle shares dropped 2.5% after The Information reported the company is earning thinner margins on its cloud business than analysts had expected and is losing money on some deals involving the rental of Nvidia chips.
However, Nvidia CEO Jensen Huang brushed off the report, telling CNBC’s Jim Cramer that Oracle is “going to do incredibly well”.
Despite the broader weakness, IBM rose 1.6% after announcing a partnership with artificial intelligence startup Anthropic, a move seen by investors as a strategic step into the fast-growing AI sector.
Meanwhile, the U.S. government shutdown entered its second week, with the Senate again failing to pass a House bill that would have funded federal operations through 21 November.
The measure fell short of the 60 votes required to advance, with most senators voting along party lines.
President Donald Trump reiterated his stance in a Truth Social post Monday night, writing, “I am happy to work with the Democrats on their Failed Healthcare Policies, or anything else, but first they must allow our Government to re-open.”
The continuing uncertainty over the shutdown prompted investors to move out of risk assets and into safe havens. Gold futures surged to $4,000 per ounce for the first time, while bond yields slipped.
The 10-year Treasury yield fell 0.8% to 4.125%, and the 2-year yield declined 0.6% to 3.57%, reflecting a flight to safety as markets awaited signs of political resolution.
