Credit stress is threatening to unwind the AI bull. All eyes are on Oracle to hold the line

Oracle bonds are sitting dangerously close to junk territory as markets cool on artificial intelligence. Much of the AI trade fizzled last week, led by CoreWeave — the neocloud company whose equity and debt has been tanking . Oracle now faces risk of credit rating downgrades that could tip its debt into junk territory — with potentially cascading effects across the AI financing ecosystem. "There seems to be a sentiment shift, which almost speaks to 2026 in general, where we're so bullish about everything and then we're so bearish about everything," said Pat Nerney, head of investment solutions at Dynasty Financial Partners. "It just shows you how quickly this market moves.