8th October 2025 – Stocks fall as investors question Oracle’s margins on Nvidia Chips

MPC Morning Call – October 8, 2025Stocks fell sharply overnight as internal Oracle memos raised doubts about the profitability of its cloud business and margins on renting Nvidia chips, sending Oracle shares down over 5% and dragging the tech sector lower. Alphabet and Meta both dipped more than 1%.Dell bucked the trend, raising long-term forecasts for revenue and earnings on strong AI and data center prospects, lifting its shares more than 4%.US federal government shutdown entered a second week, delaying key economic data releases and complicating the Fed’s interest rate outlook. President Trump indicated possible compromise progress with Democrats on healthcare subsidies.In autos, Tesla eyes a more affordable Model Y, aiming to sustain sales momentum despite looming US tax credit expirations. Ford slipped on supply chain woes, while Constellation Brands edged up after strong sales despite immigration headwinds.Gold prices soared near a record $4,000 per ounce, driven by safe-haven demand and Fed rate cut expectations. Oil declined on supply overhang, despite modest OPEC+ output increases.ASX preview: SPI futures point flat as the Aussie market holds around recent highs; healthcare remains resilient and James Hardie soared 8.91% in NY on stronger-than-expected quarterly sales.Tuesday Recap: The S&P/ASX 200 slipped 0.3%, with declines across all sectors. Notable movers included REA Group, Seek, CAR Group, Breville down 5.1%, and a gold price surge boosting Newmont. Rio Tinto reaffirmed growth plans, while St Barbara and Brisbane Broncos dropped after capital raising and losses.