U.S. markets experienced a downturn, primarily influenced by a significant drop in Oracle's stock. The tech giant's shares fell by 5.5% in a single session, raising concerns about a potential bubble in AI-related stocks. This decline contributed to a broader decrease in the Nasdaq and overall Wall Street performance.

Oracle, a 48-year-old company known for its software and hardware products, had recently seen a surge in its stock value, briefly making CEO Larry Ellison the world's richest person, surpassing Elon Musk. The company's rise was fueled by excitement surrounding its investments in artificial intelligence. However, skepticism has emerged, with some analysts questioning the sustainability of this growth. A former head strategist at JP Morgan remarked, "A rational investor must short this."

In addition to the stock market's struggles, the Australian dollar has also faced challenges. It has slid back to approximately 65.55 U.S. cents, influenced by a stronger U.S. dollar. Analysts at CBA suggest that the Australian dollar could decline further, particularly if upcoming U.S. inflation data reveals unexpected price increases. They noted, "We doubt AUD/USD will test the next support at 0.6428 just yet."

The Reserve Bank of Australia's policy meeting on Tuesday is anticipated to be a key factor for the Australian dollar, with expectations that the cash rate will remain steady at 3.6%. As financial markets continue to react to these developments, investors are closely monitoring the situation for further insights.