US Stocks Rebound as Oracle's AI Spending Plans Spark Concerns

US stocks staged a partial recovery on December 10, 2025, as investors digested Oracle Corp.'s plans for significant capital outlays on artificial-intelligence infrastructure. The tech giant's announcement drove a broad retreat from risky assets, with the S&P 500 clawing back losses and the Nasdaq 100 paring a 1.6% drop.

Oracle's cloud sales fell short of analyst estimates, and the company increased its 2026 capital spending outlook by $15 billion to $50 billion. This move sparked concerns about the sustainability of the AI investment boom, with Oracle viewed as a bellwether of the sector. The company's shares tumbled in response, reflecting the market's growing unease about the financial implications of AI spending.

The S&P 500 closed at 4,143.19, a 0.4% gain from the previous day's close. The Nasdaq 100, which had been down 1.6%, ended the day at 15,511.19, a 0.3% decline. The Dow Jones Industrial Average rose 0.5% to 35,623.19. Small-cap stocks, which had been lagging behind their larger counterparts during the tech-led equity bull run, climbed to all-time highs, with the Russell 2000 index rising 1.2% to 2,104.19.

Oracle's capital spending plans are a significant concern for investors, as they signal a major shift in the company's strategy. The $50 billion outlay is a substantial increase from the company's previous guidance, and it reflects the growing importance of AI in Oracle's business. The company's cloud sales, which had been a key driver of its growth, fell short of analyst estimates, sparking concerns about the sustainability of the company's revenue streams.

The AI investment boom has been a major driver of the tech sector's growth in recent years, with companies like Oracle, Microsoft, and Alphabet investing heavily in AI research and development. However, concerns about the financial implications of this spending have been growing, with some investors questioning the return on investment (ROI) of these expenditures.

The market's reaction to Oracle's announcement reflects the growing unease about the financial implications of AI spending. While the company's shares tumbled, other tech stocks also declined, with the Nasdaq 100 paring its losses. The market's partial recovery suggests that investors are still optimistic about the long-term prospects of the tech sector, but they are increasingly cautious about the short-term implications of AI spending.

As the market continues to grapple with the implications of AI spending, investors will be closely watching Oracle's performance in the coming months. The company's ability to deliver on its AI strategy and generate returns on its investments will be closely watched, and any signs of weakness could spark further concerns about the sustainability of the AI investment boom.