Oracle Corp.'s credit risk gauge improved the most since February after the database giant's quarterly report eased investor concerns about AI-related capital spending. The cost of protecting the company's debt against default for five years fell as much as 0.054 percentage point to a one-month low of 1.52 percentage points, according to ICE Data Services. Credit default swap prices typically fall as investor confidence in a firm's credit quality improves.

Oracle shares jumped some 10% premarket as it reported strong sales and issued an outlook suggesting little letup in demand for AI computing. The firm's big spending on artificial intelligence has attracted attention from investors increasingly concerned about an AI bubble. Last quarter's capital expenditures reached about $18.6 billion, well above the $14 billion anticipated by analysts. But Oracle maintained its fiscal-year forecast of $50 billion.

Its solid results and upbeat outlook helped calm investors, Bloomberg Intelligence analysts Robert Schiffman and Alex Reid wrote in a note Tuesday. Still, Oracle's bonds and credit-default swaps "remain well wide of peers as concerns persist," they added. The company last month raised $25 billion in the US high-grade market and said it planned to raise a further $25 billion in the equity market, helping reassure investors that the company wouldn't strain its balance sheet too much.