Microsoft said to be ending Oracle pact for AI cloud capacity

US stocks are surrendering part of their earlier gains amid a report that Microsoft is ending its Oracle arrangement for AI cloud capacity. What is not clear is how broad any wind-down would be or when it would happen.

Oracle's stock was last at $111.35, following a climb to $119.70, the session's peak. In the latest hourly period, the price dropped to $109.21, its weakest level since February 2024. The result is a decline of $8.35, or about 7%, from the day's high.

This report lands one day after the Nasdaq 100 dropped 6.36%, with investors selling chipmakers and other stocks tied to the AI buildout. Investors are left asking whether Microsoft is moving where it sources computing power or reducing how much capacity it plans to add.

The main benchmarks are still up for the session, though they have retreated from their best levels and are edging back toward the day's lows:

• S&P 500: 7,392.72, up 38.99 points, or 0.53%.

• Nasdaq Composite: 24,584.98, up 269.98 points, or 1.11%.

• Russell 2000: 2,748.01, up 18.12 points, or 0.66%.

• Nasdaq 100: 26,978.11, up 348.30 points, or 1.31%.

Oracle's immediate downside marker is $109.21. A bounce could have room to develop if that low attracts buyers. Should the price move below it and stay there, sellers would remain in charge. For the wider market, the session lows are the key support. If those break, Thursday's low becomes the next focus.