US EQUITY OPEN: Stocks open lower with tech leading losses after Oracle (ORCL) data centre force majeure

OPEN: Stocks opened lower on Thursday, with the Nasdaq underperforming while the other major indices slide between 0.2% and 0.4%. Sectors are mixed, with Communication Services, Energy and Health Care outperforming, while Technology, Industrials and Consumer Discretionary lag. Technology and Industrials are weighed on by AI concerns following Oracle's (ORCL) force majeure notice regarding the New Mexico data centre, with the company seeking to defer payments on the project if it is delayed. The news is weighing on Oracle, alongside Bloom Energy (BE) and Blue Owl (OWL), which have exposure to the data centre. Meanwhile, Treasury yields are bull steepening, with the front end leading the move lower while long-end yields are little changed. Crude prices are rising amid limited signs of diplomatic progress between the US and Iran, while Senior Adviser to Iran's Supreme Leader Safavi warned that linking the Persian Gulf and Red Sea theatres, including the Strait of Hormuz and Bab al-Mandab, could change the battlefield. He added that if the US starts a new war, a new front centred around these regions “may open before their eyes”. In FX, the Dollar continues to outperform, while the Swiss Franc, Yen and Looney lag. For the Swiss Franc, the SNB held rates at 0% as expected and removed its “increased willingness” to intervene language, replacing it with a statement that it is “willing to be active in the foreign exchange market”. STOCK SPECIFICS Oracle (ORCL) / Blue Owl Capital (OWL) / Bloom Energy (BE): Lower after Oracle sent a force majeure notice over a New Mexico data centre MGM Resorts International (MGM): Barry Diller withdrew People Inc.'s bid to acquire the remaining stake in MGM Resorts TransUnion (TRU): CFO has made the personal decision to step down Viking Therapeutics (VKTX): Increased common stock offering to USD 225mln from USD 200mln; priced at the low end of the deal range Knife River (KNF): Starboard urged Knife River to improve execution and profitability Delek US Holdings (DK): To sell USD 400mln in convertible senior notes due 2031 Dropbox (DBX): Downgraded at Citi to 'Sell' from 'Neutral'