Oracle shares drop about 5% amid rising bond yields

Oracle shares fell about 5% Tuesday, marking a third consecutive session of losses as rising global government bond yields and renewed inflation concerns pressured technology stocks.

The broader market also declined on the first trading day of September. The S&P 500 fell 0.3%, the Nasdaq Composite lost 0.5% and the Dow Jones Industrial Average dropped about 221 points, or 0.4%. Yields climbed: the U.S. 10-year Treasury reached levels not seen since January 2025, Japan’s 10-year government bond hit its highest level since August 1996 and Germany’s benchmark yield was near its highest since 2011. Stocks later recovered from intraday lows as upward pressure on yields eased.

Investors are focused on two near-term events for Oracle: quarterly results expected between Sept. 10 and 15, and an investor day on Oct. 28 that will center on the company’s cloud strategy.

TD Cowen lowered its price target on Oracle to $240 from $300 while maintaining a Buy rating, saying the analyst day will likely emphasize cloud computing and could include updated fiscal 2030 targets.

Citi opened a positive catalyst watch on Oracle, noting the recent share-price collapse could present a buying opportunity ahead of earnings and the October event. The bank attributed pressure partly to investor capitulation and technical selling, including wider credit spreads and at-the-market equity issuance. Citi highlighted a peak-to-trough drawdown of more than 50% within 30 to 40 days and described the move as an extreme outlier versus historical volatility.

Oracle has underperformed many large-cap technology peers and is down roughly 4% over the past six months. The company added more than $85 billion in sequential backlog in its May quarter, compared with roughly $9 billion of sequential backlog added by the newer cloud providers referenced by Citi.

Analysts remain divided: some point to valuation risk and the potential for further downside, while others highlight cloud demand trends and backlog growth as possible drivers of revenue and margin improvement.

For shareholders, the September earnings report and the Oct. 28 investor day are the next scheduled checkpoints to provide updated results and guidance on Oracle’s cloud business.