Shares of technology companies fell and the tech sector of the S&P 500 entered correction territory as investors focused on the downsides of the artificial-intelligence boom.
Amazon.com became the latest mega-cap tech company to raise external financing for its AI ambitions, announcing Wednesday a $17.5 billion delayed-draw term loan facility for data-center expansion. Investors are questioning the prudence of such investments, and rotating out of AI bets. The SPDR Select Sector Technology exchange-traded fund, which tracks the technology industry group of the S&P 500, fell 2.3% and is now more than 10% from its recent peak.
Shares of Oracle fell sharply in late trading after growth at the business software maker's cloud unit failed to offset worries about slowing software sales and potential overspending on data centers.
The planned initial public offering of SpaceX would create such a mammoth stock that it could take some oxygen away from the overall tech and semiconductor trade, warned analysts at brokerage Wedbush, in a note to clients.
CDK Global, a software company backed by investment firm Brookfield, entered talks with creditors to restructure its $5.5 billion of debt.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
06-10-26 1704ET
