Stocks mixed, with Oracle adding to AI jitters; dollar, US yields decline on Fed views

Major stock indexes were mixed on Thursday, with technology-related shares down after cloud computing giant Oracle  sounded a warning for artificial intelligence profitability, while the dollar and U.S. bond yields extended declines from the day before, when the Federal Reserve cut interest rates but gave a less hawkish outlook than expected.

The Nasdaq slipped to a one-week low early. The S&P 500 was slightly lower, while the Dow was up sharply, adding to Wednesday's gains following the Fed rate cut. A global stock index was also higher.

Oracle reignited jitters over stratospheric tech valuations by missing analysts' sales and profit estimates and flagging a $15 billion AI overspend. Its shares were last down 13.1% and the S&P 500 tech sector  was down more than 1%. Shares of Al leader Nvidia  were down 3.4%.

Broadcom  shares were down 4.4%, and all eyes will be on its quarterly results, due after the closing bell

Earlier, Japan's Nikkei  had lost almost 1% overnight too as SoftBank  - a partner with Oracle on the U.S. Stargate data centre project - slumped more than 7.5%.

"We have Broadcom earnings after the close, so AI is going to remain in focus for the next 24 hours or so," said Michael O’Rourke, chief market strategist at JonesTrading in Stamford, Connecticut.

"Overall, the market is holding up fairly well considering how Oracle is trading and the fact that the AI space is weaker, but I think investors are a little bit cautious," he said.