This development is seen as a warning sign about the profitability of the AI sector. However, the Federal Reserve's interest rate cut and announcement of short-term Treasury bond purchases have provided positive momentum, helping many regional indices rise.
The Shanghai Composite index on the Shanghai Stock Exchange opened at 3,903.89 points, up 3.39 points (0.09%). The Hang Seng index rose 169.83 points (0.66%) to 25,710.61 points. The S&P/ASX 200 opened at 8,616.60 points, up 37.20 points (0.43%). The Nikkei 225 rose to 50,818.39 points, up 215.59 points (0.43%). The South Korean composite stock index stood at 4,163.32 points, up 28.32 points (0.68%). The MSCI index of Asia- Pacific stocks (excluding Japan) rose 0.5%.
On December 10th, the Fed decided to lower interest rates for the third time this year, a move the market had anticipated to address risks in the labor market. However, this decision revealed an unprecedentedly deep division within the Fed's policymakers. At the conclusion of its two-day policy meeting, the Federal Open Market Committee (FOMC), the Fed's policymaking body, announced a 0.25 percentage point cut in the benchmark interest rate. This brought the US federal funds rate down to a range of 3.5% - 3.75%, the lowest level since November 2022.
Oracle shares fell more than 11% after trading hours. AI-related stocks were hit hardest in Tokyo after Oracle announced lower-than-expected earnings and revenue. Oracle's management also warned of rising costs, suggesting that investments in infrastructure haven't translated into profits as quickly as investors had hoped.
The bond market continued to rise after the Fed announced it would begin purchasing short-term Treasury bonds starting December 12th to support liquidity. The yield on 10-year Treasury bonds fell by about two basis points to 4.14%, while the yield on two-year Treasury bonds fell by about seven basis points to 3.54%.
In Vietnam, at 11:45 AM on December 11th, the VN-Index fell 12.64 points (0.74%) to 1,706.34 points; the HNX-Index rose 0.17 points (0.07%) to 256.65 points.
Source: https://baotintuc.vn/thi-truong-tien-te/chung-khoan-chau-a-van-tang-diem-sau-bao-cao-gay-that-vong-cua-oracle-20251211122933856.htm
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