Oracle stocks plunge as Fed message weighs on dollar

By Tom Westbrook

Stocks fluctuated in Asia on Thursday after disappointing earnings from U.S. cloud computing giant Oracle raised a warning for AI profitability, while bonds were steady and the dollar posted losses after the Federal Reserve cut U.S. interest rates.

oracle ORCL Shares fell more than 11% in after-hours trading, weighing on S&P 500 futures ES1! 0.3% lower and Nasdaq 100 futures NQ1! Asian trading fell by around 0.5%.

AI-related stocks were the biggest losers in Tokyo as Oracle’s profit and revenue outlook fell short of forecasts and executives announced higher spending – a sign that infrastructure spending is not turning into profits as quickly as investors had hoped.

Japan’s Nikkei NI225 The stock was trading down 5% mid-morning at AI-exposed SoftBank Group 9984 withhold the index.

Hong Kong’s Hang Seng (.HIS) rose 0.8% in early trading, sending MSCI’s broadest index of Asia-Pacific stocks outside Japan (.MIAPJ0000PUS) up 0.5%.

Overnight the Fed cut its…