Dow Jones futures rose slightly after hours, along with S&P 500 futures and Nasdaq futures. Micron Technology (MU) jumped overnight on strong earnings and guidance, lifting some other memory-related plays.

The stock market retreated Wednesday with AI plays broadly selling off as Oracle (ORCL) struggles to finance a $10 billion AI data center project. The Nasdaq fell from the 50-day while the S&P 500 undercut that level.

Nvidia (NVDA), Broadcom (AVGO), Celestica (CLS) and Vertiv (VRT) were notable losers, along with previously resilient GE Vernova (GEV) and Comfort Systems (FIX).

The video embedded in the article reviews GE Vernova stock, Walmart (WMT) and Dutch Bros. (BROS).

Dow Jones Futures Today

Dow Jones futures were up a fraction vs. fair value. S&P 500 futures climbed 0.1%. Nasdaq 100 futures rose 0.2%.

President Donald Trump will give a prime-time address to the nation Wednesday night.

Remember that overnight action in Dow futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market session.

Micron Earnings Beat

Micron earnings easily beat fiscal Q1 with revenue jumping 57%, also topping. The memory-chip giant also guided sharply higher for Q2.

Micron stock jumped in extended action. Shares hit a record 264.75 on Dec. 10 but have been consolidating for the past month, falling back to the 50-day line in Wednesday's regular session.

Sandisk (SNDK) climbed solidly overnight while fellow memory plays Seagate Technology (STX), Western Digital (WDC) were up modestly.

Memory-exposed chip-equipment makers such as Lam Research (LRCX) and Applied Materials (AMAT) gained slightly.

Oracle Fans AI Fears Again

Oracle on Wednesday confirmed that Blue Owl Capital will not be backing a $10 billion data center project, adding to concerns about the software giant's efforts to finance its massive spending needs to fulfill a massive backlog.

Oracle stock tumbled 5.4% to a fresh six-month low.

The big hyperscalers — Microsoft (MSFT), Amazon.com (AMZN), Meta Platforms (META) and Google parent Alphabet (GOOGL) — have largely been funding their AI capital spending surge via their massive cash flow.

But Oracle fears once again weighed on many AI data center plays.

Nvidia stock gave up 3.8%, Broadcom 4.5%, AMD 5.3%, Celestica 4.5% and Vertiv 6.7%, falling further below their 50-day lines and often undercutting recent lows.

GE Vernova stock dived 10.5%, wiping the AI energy play's Dec. 10 gap-up on bullish guidance and shareholder returns. Comfort Systems plunged 8.75% to below its 50-day line after holding its 21-day line for a few sessions, just below buy points.

Google stock is in better shape, but fell 3.2%, undercutting its 21-day moving average. A 50-day/10-week line test could be coming.

Micron earnings and outlook had minimal impact on all of these stocks in extended action.

Stock Market Rally

The stock market rally opened with the Nasdaq peeking above its 50-day line. By late morning, the Nasdaq was down solidly while the S&P 500 was undercutting the 50-day line as Oracle fears slammed the broader AI sector. The S&P 500 index fell 1.2%. The Nasdaq composite tumbled 1.8%.

The Dow Jones Industrial Average declined 0.5% in Wednesday's stock market trading, still holding its 21-day line. The small-cap Russell 2000 lost 1.1%, undercutting that short-term level. All are down solidly or strongly for the week.

The Invesco S&P 500 Equal Weight ETF (RSP) gave up just 0.3%, still above its 21-day.

The First Trust Nasdaq 100 Equal Weighted Index ETF (QQEW) sank 1.3%, undercutting the 50-day line.

Aside from AI, many leading stocks held up relatively well, but losses were broad.

U.S. crude oil prices rose 1.2% to $55.94 a barrel, rebounding from the lowest levels since early 2021. Late Tuesday, President Donald Trump ordered a blockade of sanctioned oil tankers in Venezuela.

The 10-year Treasury yield was essentially flat at 4.15%.

ETFs

Among growth ETFs, the Innovator IBD 50 ETF (FFTY) slumped 2.25%. The iShares Expanded Tech-Software Sector ETF (IGV) gave up 1.5%. The VanEck Vectors Semiconductor ETF (SMH) tumbled 3.6%. Nvidia and Broadcom are huge SMH holdings, with Micron a big component.

ARK Innovation ETF (ARKK) shed 3% and ARK Genomics ETF (ARKG) retreated 1.7%.

SPDR S&P Metals & Mining ETF (XME) edged up 0.1%. U.S. Global Jets ETF (JETS) descended 1.5%. SPDR S&P Homebuilders ETF (XHB) stepped down 1%. The Energy Select SPDR ETF (XLE) popped 2.2% and the Health Care Select Sector SPDR Fund (XLV) slipped 0.2%.

The Industrial Select Sector SPDR Fund (XLI) declined 1.6% with GE Vernova stock a notable holding. The Financial Select SPDR ETF (XLF) was just below break-even.

What To Do Now

The market remains divided, but seems to be weakening with all the key industries down solidly so far this week. The Nasdaq is now clearly below the 50-day line with the S&P 500 undercutting that key level. The risk is that non-AI and tech sectors begin to falter.

It's probably a good idea to be reducing exposure, though that can happen simply exiting losers while largely eschewing new buys for the moment.

It still wouldn't take much for the market rally to look vibrant again, though high-beta AI plays may need extended repair time.

Have your watchlists ready with a diverse lineup.

Read The Big Picture every day to stay in sync with the market direction and leading stocks and sectors.

Please follow Ed Carson on Threads at @edcarson1971 and X/Twitter at @IBD_ECarson for stock market updates and more.

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