Oracle Stock Falls Amid Rising Bond Yields
On September 1, 2026, Oracle Corporation (NYSE: ORCL) stock dropped nearly 5.4% as bond yields continued to rise, increasing borrowing costs for the tech giant. The broader market also declined, with both the S&P 500 and Nasdaq Composite falling by approximately 0.7% and 0.9%, respectively. Oracle's financial situation is particularly vulnerable due to its negative free cash flow of $23.7 billion in fiscal 2026. The company has been aggressively investing in AI data centers, funding the gap with significant debt — raising $43 billion last year alone and planning an additional $20 billion this year alongside a $20 billion equity raise. The rise in bond yields is driven by concerns over persistent inflation and global geopolitical tensions, including renewed conflict involving Iran. These factors have pushed U.S., Japanese, and UK long-term treasury yields to multi-decade highs.
Topics: AI data centers bond yields free cash flow Oracle stock