U.S. stock futures slipped early Thursday, suggesting a pause in momentum after the previous day’s rally. Investors continued to parse the Federal Reserve’s latest rate cut while weighing fresh concerns raised by Oracle’s (NYSE:ORCL) underwhelming forecast. Adobe (NASDAQ:ADBE), meanwhile, provided a bright spot with annual guidance that exceeded expectations.
Futures soften ahead of the open
Futures signaled a weaker start as traders digested the Fed’s third rate reduction since September together with mixed corporate news.
At 02:04 ET, Dow futures were down 213 points (–0.4%), S&P 500 futures declined 59 points (–0.9%), and Nasdaq 100 futures dropped 308 points (–1.2%).
The previous session had seen broad gains after the Fed trimmed rates by 25 basis points and Chair Jerome Powell delivered a more even-toned message than markets anticipated.
By Wednesday’s close, the S&P 500 had climbed 0.67% to 6,886.68, the Dow Jones advanced 1.05% to 48,057.75, and the Nasdaq Composite rose 0.33% to 23,654.16.
Dollar retreats as markets digest Fed stance
The U.S. dollar remained on the back foot after touching a seven-week low, pressured by Powell’s remark that he does not believe “a rate hike is anyone’s base case” in the near term.
Traders increased bets on additional policy easing in 2026, dragging the greenback lower. By 03:13 ET, the U.S. dollar index slipped 0.1% to 98.65.
Although the Fed lowered rates to a 3.50%–3.75% range, policymakers were notably divided. With earlier cuts already delivered in September and October, many officials signaled they prefer to wait for more clarity on weakening labor conditions and “somewhat elevated” inflation before acting again.
Fresh economic projections showed expectations for stronger U.S. growth in 2026—but also substantial disagreement about the path of interest rates as the administration pursues sweeping trade changes and AI continues to drive investment flows.
Attention is now turning to the White House’s upcoming decision on the next Fed chair, with Kevin Hassett viewed as the favorite. Analysts widely expect he could support the aggressive rate-cutting approach long emphasized by the president.
As ING’s James Knightley and Padhraic Garvey wrote, “Current Fed members suggest just one further cut is their 2026 central projection, but with changes coming and the jobs market cooling the risks are skewed towards them cutting by more.”
Oracle stumbles on guidance
Oracle’s shares plunged more than 12% in after-hours trading after the company issued revenue and profit projections that fell short of expectations.
Management also revealed that capital spending will rise by an additional $15 billion, intensifying concerns that massive AI-related investments are not yet converting into returns.
The company sees adjusted earnings of $1.64–$1.68 a share this quarter—below forecasts of $1.72—and expects slower-than-anticipated revenue growth of 16–18%.
The latest earnings also disappointed across key metrics, including revenue, operating income, and upcoming cloud commitments.
Adobe shines amid broader tech caution
Adobe delivered a stronger-than-expected annual outlook, suggesting the company’s AI-powered features are beginning to drive sustained demand.
Revenue for the year is projected at $25.90–$26.10 billion, above expectations. Adjusted earnings are also forecast to top street estimates.
CFO Dan Durn told Reuters that monthly active users of Adobe’s freemium tools surged 35% from a year earlier to over 70 million.
Trump calls for CNN sale
In a new twist to the ongoing media-sector drama, President Trump stated that CNN should be sold as part of any transaction involving Warner Bros Discovery (NASDAQ:WBD).
According to the president, it is “imperative that CNN be sold”, regardless of the ultimate buyer of Warner.
His comments surface as Paramount pursues a $77.9 billion hostile takeover bid for Warner, a deal that would include CNN.
Leave a Reply