Why are Stocks Down Today?
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TLDR Stock futures dropped Thursday with Nasdaq futures falling 1.2% and S&P 500 futures down 0.8% Oracle shares plunged over 10% after missing quarterly revenue targets and increasing spending plans Federal Reserve cut interest rates by 0.25% to 3.5-3.75% on Wednesday in split 9-3 vote Fed projects only one additional rate cut in 2025, slower easing than markets expected Broadcom, Costco, and Lululemon set to report quarterly earnings Thursday US stock futures fell Thursday morning as disappointing results from Oracle overshadowed the Federal Reserve’s latest interest rate cut. Nasdaq 100 futures led the decline with a 1.2% drop while S&P 500 futures decreased 0.8%. E-Mini S&P 500 Dec 25 (ES=F) Dow Jones Industrial Average futures showed more resilience, falling just 0.4%. The smaller decline reflected the index’s lower exposure to technology stocks compared to other major benchmarks. Oracle Revenue Miss Sparks Tech Selloff Oracle stock collapsed more than 10% in after-hours trading following its quarterly earnings report. The enterprise software company’s revenue came in below Wall Street forecasts for the period. The company also raised its capital spending forecast. This increase raised concerns among investors about returns on AI infrastructure investments. Oracle’s mounting debt levels troubled analysts. The company’s dependence on its OpenAI partnership to achieve revenue goals added to Wall Street’s worries about the stock. Ryan Lee from Direxion said capital spending keeps climbing above Street expectations for major tech firms. This pattern is creating pressure across the technology sector. AI-related stocks fell in sympathy with Oracle’s decline. The weakness spread through semiconductor and cloud computing shares in pre-market trading. Fed Delivers Rate Cut With Cautious Outlook The Federal Reserve cut its benchmark interest rate Wednesday by a quarter percentage point. The new federal funds rate range sits at 3.5% to 3.75%, the lowest level in three years. JUST…
