"The kicker for Wednesday was that various media outlets reported that Blue Owl Capital ( NYSE: OWL) may not fund the $10 billion data center for OpenAI, which in turn hammered Oracle Corporation ( NYSE: ORCL). Blue Owl had been in talks with Oracle about funding a 1-gigawatt facility for Michigan, but the spiraling increase in debt was reported to have turned the tables, at least for now. That led to steep losses across the major indices, with the Nasdaq taking the biggest hit, closing down 1.81% at 22,693."
"Yields were flat across the Treasury curve on Wednesday as most traders remained on the sidelines awaiting this morning's Consumer Price Index data. Wall Street has a 3.1% year-over-year expectation for the headline inflation number, and the same for the volatile Core CPI, which excludes food and energy. While inflation appears to be stabilizing, it is still above the Federal Reserves 2% target. The 30-year bond closed at 4.83%, while the benchmark 10-year note was last at 4.15%."
Futures rose as markets neared the Christmas holiday, while AI and datacenter stocks encounter year‑end resistance after a near 30% rally since April. Reports that Blue Owl Capital may not fund a $10 billion, 1‑gigawatt data center for OpenAI tied to Oracle pressured technology shares and contributed to steep index losses; the Nasdaq fell 1.81% to 22,693, the S&P 500 dropped 1.16% to 6,721, and the Dow declined 0.47% to 47,885. Treasury yields held steady ahead of Consumer Price Index data, with the 10‑year at 4.15% and the 30‑year at 4.83%. Energy prices rose after U.S. restrictions on Venezuelan tanker movements were announced.
Read at 24/7 Wall St.
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