Oracle Corp (NYSE:ORCL) shares are falling Monday along with other software stocks as rising oil prices and Treasury yields weigh on broader market sentiment.
- Oracle shares are experiencing downward pressure. Why is ORCL stock trading lower?
Rising Oil Prices and Yields Pressure Growth Stocks
Broader macro pressure is weighing on Oracle stock to start the week. Brent crude climbed toward $108 a barrel after Iran refused to soften its demands around reopening the Strait of Hormuz, while President Donald Trump sent mixed signals on the prospect of further talks.
Treasury yields sold off across the curve in response, with the five-year rising 7 basis points to 5.06% as traders added to bets on further rate hikes ahead of Wednesday’s PCE inflation reading. That report will provide the first reading of the Fed’s preferred inflation measure since September’s rate hike, after core PCE rose 3.3% year-over-year through July.
Nasdaq 100 futures dropped 1% as the moves in oil and yields weighed on growth-oriented stocks broadly, including software names like Oracle.
Renewed PeopleSoft Hacking Activity Adds to the Pressure
Oracle is also facing company-specific pressure after Google’s Mandiant unit flagged that hacking group ShinyHunters has renewed large-scale attacks on Oracle’s PeopleSoft platform, according to Reuters. This round is reportedly aimed at organizations that updated their firewall rules but never actually installed Oracle’s fix for the underlying flaw.
The activity has reached dozens of systems worldwide, coming just days after ShinyHunters claimed to have stolen FBI personnel data through a separate PeopleSoft flaw. The FBI said it’s “aggressively investigating” the reported breach.
Oracle Is Underperforming a Middling Technology Sector
Against that macro backdrop, Oracle’s own sector standing looks weak too. Oracle sits within Technology, which ranks seventh out of 11 S&P sectors today, down 0.82%. Oracle itself is underperforming the sector today, even though it remains up 4.38% over the past month and 2.17% over the past 90 days.
Today’s sector leadership is concentrated in defensive and commodity-linked areas, including Energy, Healthcare and Consumer Staples, while Communication Services and Consumer Discretionary lag behind, pointing to softer risk appetite across growth-sensitive parts of the market.
Zooming out, today’s decline adds to a rough stretch for the stock more broadly. Oracle is down roughly 10.8% over the past week and has faced broad selling pressure over the past month.
ORCL Shares Are Slipping
ORCL Price Action: Oracle shares were down 2.76% at $133.31 at the time of publication on Monday, according to Benzinga Pro.
Image: Piotr Swat/Shutterstock
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