Treasury Secretary Scott Bessent will testify before the House Financial Services Committee on Tuesday, highlighting economic successes including rising wages for lower-income Americans and sanctions against Iran. Congress is expected to question him on inflation, energy prices, interest rates, federal debt, and the administration's fiscal record.
Wall Street is assessing the impact of a potential AI model development slowdown on data center infrastructure investments, after Anthropic CEO Dario Amodei proposed slowing frontier model development. Major stocks in AI infrastructure—including Oracle, GE Vernova, and Caterpillar—declined sharply on the news, while hyperscalers rush to secure debt financing amid growing pressure on data center expansion.
Oracle beat earnings expectations with adjusted EPS of $1.92 versus $1.74 expected and revenue of $19.35 billion versus $19.14 billion expected, driven by cloud infrastructure revenue more than doubling to $7.4 billion. The company raised full-year 2027 guidance and reported 30% year-over-year revenue growth, though it carries $125 billion in debt and reported negative free cash flow of $5.4 billion as it invests heavily in data center capacity for AI services.
The Treasury Department announced it will buy back up to $6 billion in government debt, tripling normal operations, to maintain bond market liquidity and support Treasury yields that have risen to levels unseen since 2008. The move follows an August announcement to at least double buybacks, though market reaction was negative with yields continuing to rise. Future operations will be at least $4 billion, marking a significant shift in Treasury debt management strategy.