Wall Street futures were under pressure Friday as concerns over the stability of U.S. regional banks mixed with persistent trade tensions between Washington and Beijing. Oracle Corporation (NYSE:ORCL) unveiled an ambitious long-term growth forecast fueled by surging AI demand, while CSX Transportation (NASDAQ:CSX) posted weaker profits but still outperformed expectations. Meanwhile, Micron Technology (NASDAQ:MU) is reportedly preparing to halt server chip shipments to Chinese data centers, and gold’s record-setting rally shows no sign of slowing.
Futures Extend Losses
U.S. equity futures pointed sharply lower, setting up a continuation of Thursday’s selloff as investors grew uneasy about credit risks facing regional lenders.
By 03:46 ET, Dow futures were down 546 points (1.2%), S&P 500 futures fell 96 points (1.5%), and Nasdaq 100 futures slid 382 points (1.5%).
Thursday’s session saw the main indexes retreat after a negative credit update from Zions Bancorporation intensified worries linked to the recent collapses of auto parts supplier First Brands and dealership TriColor.
Zions shares plunged 13%, while Western Alliance Bancorporation lost more than 10% after disclosing a fraud lawsuit against one of its borrowers. Rising U.S. Treasury yields added further pressure across equities.
In a note, analysts at Vital Knowledge warned that “people [are growing] more concerned about a potential systemic problem,” but also noted that “based on all the bank reports thus far, it does seem like First Brands and TriColor are isolated, as credit quality in aggregate remains healthy.”
Oracle’s Bold AI Forecast
Oracle Corporation offered investors an optimistic view of its future, unveiling a long-term financial outlook driven by skyrocketing AI demand that the company described as “really hard to comprehend.”
At an analyst meeting Thursday, executives projected revenue of $225 billion and adjusted earnings of $21 per share by fiscal 2030 — both ahead of Wall Street estimates. Nearly two-thirds of that revenue is expected to come from Oracle’s AI-powered cloud infrastructure.
CEO Clay Magouyrk emphasized the breadth of demand, noting that new bookings are arriving from a diverse customer base, not just from OpenAI.
Although the guidance was widely anticipated, analysts flagged potential margin pressures as Oracle ramps up AI spending. According to LSEG data cited by Reuters, gross margins are expected to dip slightly by fiscal 2027. Shares fell in after-hours trading.
CSX Posts Mixed Quarter
Shares of CSX Transportation moved higher after hours despite reporting a drop in third-quarter profit to $694 million, or $0.37 per share, compared to the prior year. Excluding $164 million in impairment charges, earnings came in at $0.44 a share, topping analyst forecasts.
CEO Steve Angel hinted that the company remains open to “any strategic options” that make sense, fueling ongoing speculation about potential mergers. Earlier this year, an $85 billion deal between Union Pacific and Norfolk Southern intensified talk of consolidation in the sector.
CSX and BNSF Railway already announced a partnership in August to link routes between the U.S. West and East Coasts, a move that eased some of the merger rumors. Nonetheless, activist investor Ancora Holdings continues to pressure CSX to pursue a tie-up.
Micron to Halt Server Chip Sales to China
Micron Technology plans to stop supplying server chips to Chinese data centers, according to Reuters, citing two sources familiar with the matter.
The move comes after China’s 2023 ban on Micron products in “critical infrastructure,” widely seen as a response to U.S. export controls on advanced technology. Micron will continue to sell to Chinese firms with data center operations outside the country, including Lenovo Group, as well as to the automotive and mobile sectors.
China accounted for roughly 12% of Micron’s revenue in its last fiscal year. Server chips are vital for running advanced AI applications, making the decision strategically significant.
Gold Rally Extends
Gold prices surged to new record highs as expectations of a Federal Reserve rate cut and U.S.-China trade tensions fueled safe-haven demand.
Spot gold rose 0.3% to $4,339.28 per ounce at 03:33 ET after hitting a fresh high of $4,379.29 earlier in the session. U.S. gold futures for December climbed 1.0% to $4,348.86.
The metal is on track for its ninth consecutive weekly gain and fifth straight session of record-breaking prices. In addition to Fed expectations, strong central bank buying, inflows into gold ETFs, and robust Asian demand are sustaining the rally.
Trade tensions and concerns over a prolonged U.S. government shutdown have further reinforced the flight to gold.
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