AI Anxiety Hits Oracle as Bitcoin and Ether Consolidate, Markets Brace for Additional Fed Easing

U.S. stocks slid Thursday after Oracle Corp. reported its steepest one-day drop in nearly a year, raising concerns that heavy AI spending may outpace near-term returns. Traders remained focused on preserving trend structure, with flows concentrated in large-cap equities.

Oracle Pressures Tech

Shares of Oracle fell over 11% after the company revealed a surge in capital expenditures for AI data centers and infrastructure. Quarterly spending hit roughly $12 billion, well above expectations, while full-year capex guidance rose to about $50 billion — a $15 billion increase from September.

The announcement reignited doubts about when AI investments will generate meaningful cloud revenue, pushing Oracle to its lowest level since early 2024 and sending a measure of its credit risk to a 16-year high. The selloff weighed on broader tech sentiment, particularly across AI-focused stocks that have powered much of this year’s rally. The Nasdaq 100 slipped as investors rotated cautiously into other sectors.

Crypto Markets Stable

Crypto markets showed relative stability, decoupling modestly from equity weakness. Bitcoin reclaimed levels above $92,000, up about 2.6%, stabilizing after briefly dipping into the low $90,000s earlier this week.

Ether rose alongside Bitcoin, approaching $3,260, while SOL outperformed with gains exceeding 6%, reflecting renewed interest in higher-beta layer-1 tokens. XRP and BNB posted modest gains, remaining range-bound as investors awaited clearer signals on spot ETF developments. Dogecoin edged higher but stayed lower on a weekly basis, reflecting broader market sentiment rather than token-specific catalysts.

“Major institutions are increasingly divided on the Fed’s path forward,” analysts at Bitunix told CoinDesk. “Some expect further rate cuts beginning in March, while others anticipate a January pause, a cautious first half, or a delay until after June.”

They added that the “hawkish cut” highlights the FOMC’s growing difficulty maintaining cohesion under Chair Powell.

Outlook

With markets digesting both a fractured Fed outlook and heightened scrutiny of AI spending, investors appear set to remain tactical. Near-term direction is likely to depend less on policy signals and more on whether earnings and liquidity can support the next leg of risk-taking across equities and crypto.

For now, flows remain concentrated in large-cap equities and top-tier crypto as traders weigh selective upside against macro uncertainty and corporate spending pressures.