Oracle Falls 4% as Bond Selloff Tests Its Debt-Funded AI Buildout, Nebius Slips

Oracle (ORCL) slides 4% and Nebius (NBIS) drops 3% as the 10-year Treasury yield climbs to a one-year high of 4.8%.

Cloud ETF SKYY falls 2% versus QQQ's 1% drop, confirming debt-heavy AI infrastructure stocks absorb rate shocks harder than broad large-cap tech.

Oracle funded $56 billion in fiscal 2026 capex by raising $43 billion in debt, leaving it the most leveraged mega-cap AI builder when borrowing costs rise.

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A global bond selloff that lifted the 10-year Treasury yield to a recent high is landing hardest on balance sheets carrying the heaviest debt-funded AI capital expenditure. Oracle ( NYSE:ORCL ) sits at the front of that queue, and its stock is repricing on the higher cost of the borrowing that funds its buildout.

Oracle stock is down 4% to $142.82 in Tuesday afternoon trading, extending a slide that had already left Oracle stock down 23% year to date through Monday's close. Meanwhile, Nebius Group ( NASDAQ:NBIS ) stock is slipping in sympathy, down 3% to $200.45 as another AI infrastructure builder financing its expansion through debt and equity issuance.

The First Trust Cloud Computing ETF ( NASDAQ:SKYY ) is down 2% to $161.76. Broader tech is holding up better, with the Invesco QQQ Trust ( NASDAQ:QQQ ) down 0.9% to $710.30. Cloud infrastructure and software are selling harder than large-cap technology overall, and Oracle stock is falling harder than the cloud group it belongs to.

Bond Selloff Reprices the Cost of Building

Yields on the 10-year Treasury note rose to 4.78% Tuesday morning. Rising long-term rates directly lift the cost of the borrowing that funds hyperscale data-center construction. Among mega-cap AI infrastructure names, Oracle carries a relatively high leveraged balance sheet, which is why the same rate move produces a bigger price reaction here than in the broader cloud complex.

Oracle's fiscal 2026 capital expenditure totaled $55.7 billion, up from $21.2 billion the prior year, producing a cash outflow $23.7 billion greater than the business generated. Oracle covered that gap by raising $43 billion in debt markets and a further $5 billion by selling stock. A buildout funded that way reprices directly when the cost of borrowing rises, and this can help to explain why Oracle stock is trading below its 200-day moving average of $170.66.