The S&P 500 made it difficult on Tuesday (7.10.25) in the closure of Wall Streetinfluenced by the fall of Oracle’s shares, amid investors’ growing concerns about the profitability resulting from the development of artificial intelligence (AI). At the same time, Wall Street is closely watching Washington developments, as the US government is now in its second week.
Specifically, Wall Street’s main indicators recorded losses, with the Nasdaq 100 receding by 138.33 points or 0.55% and closing at 24,783.95 points. The S&P 500 dropped 25.58 points or 0.38%, stood at 6,699.92 points, while the Dow Jones industrial index closed at 46,448.02 points, with losses of 91.99 points or 0.20%.
Oracle was at the center of the pressure, leading to a fall in technological shares. According to a report in The Information, the software company is showing much lower profit margins in the cloud activities than analysts’ estimates, while reporting losses on some Nvidia chip rental agreements. Oracle’s shares fell above 2%, resulting in Nasdaq reaching the lowest point of the session.
“There is a great deal of interest in capital expenditure and in ensuring that you are the first or you are able to get the technology you need to increase your profits in this new field of artificial intelligence”, said to CNBC Anthony Saglimbene, Ameriprise Strategy Strategy. “Investors, at some point, will consider how much money is spent and say: What is the return on investment?”.
He added: “It doesn’t mean that artificial intelligence is in a bubble. It simply means that there is probably an opportunity for a slight return to expectations, especially in terms of the results and profitability of this huge amount of money invested in artificial intelligence at the moment. “.