Oracle Corp (ORCL -5.58%) stock is falling today, down 5.4% as of 1:52 p.m. ET on Tuesday, Sept. 1, 2026, as bond yields continue to rise, which could have serious consequences for the debt-laden tech giant.
The S&P 500 and Nasdaq Composite are both down, sliding 0.7% and 0.9%, respectively.
NYSE: ORCL
Key Data Points
The 30-year Treasury yield is near a 20-year high
As U.S. 30-year treasury yields hover near 20-year highs, major bond markets around the world are setting their own records. In Japan, 10-year notes hit their highest level since 1996, while in the U.K., yields on the 30-year Gilt set a near 30-year record.
Bond markets are uneasy over persistent inflation and global conflicts, especially the Iran war, which has reignited in recent days. Oil prices are once again moving higher.
Oracle's free cash flow was negative $23.7 billion in fiscal 2026
This has consequences for businesses across the market, but Oracle is especially sensitive to changes in the bond market. That's because it is currently spending enormous sums in a race to build AI data centers as quickly as possible.
Image source: Getty Images.
And it's spending considerably more than it's taking in -- free cash flow (FCF) dropped to negative $23.7 billion last year. To fund the difference, Oracle raised $43 billion from the debt market last year and expects to raise another $20 billion in the current year, in addition to a $20 billion equity raise.
Rising yields mean borrowing becomes more expensive.
