US EditionOracle Knocks Stocks as Fed's Message Drags on Dollar
Oracle's profit warning dragged AI stocks and futures while the Fed cut rates by 25 basis points, signaling more easing and boosting bonds and the euro, analysts said.
- On December 11, 2025, the Federal Reserve lowered its benchmark funds rate by 25 basis points to 3.5-3.75 per cent, but Oracle Corp.'s after-hours report tumbled shares more than 11%, dragging S&P 500 futures and Nasdaq 100 futures.
- Oracle raised its 2026 capex outlook by $15 billion to $50 billion, saying cloud sales missed estimates and executives flagged rising AI data-center spending financed with debt.
- Nasdaq 100 futures slumped more than 1% and S&P 500 contracts fell 0.9% in follow-through trading, while AI-related stocks in Tokyo led declines as Asia-Pacific regional equities erased earlier gains.
- The 10-year yield eased to 4.14% and the 2-year yield to 3.54% as the Fed said it would start buying short-term Treasuries as soon as Friday to support liquidity, with traders pricing in at least two rate cuts in 2026.
- Despite big gains, investors have grown more cautious about AI-related capex while eyeing possible further Fed easing next year as MSCI Inc.'s index of global stocks surged about 20% this year.
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InsideNoVA.com
Stocks diverge as AI fears cloud US rate cut
Stock markets diverged Thursday as optimism over the Federal Reserve's latest interest rate cut was dampened by disappointing earnings from software giant Oracle, which revived concerns over sky-high AI valuations.
After the Fed's rate drop, the World Stock Exchanges remain on their guard this Thursday, December 11. Initial optimism has been hampered by the disappointing results of Oracle and the rising costs of AI, affecting technological values in Europe, the United States and Asia.
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Cryptocurrency News | Cryptocurrency Prices | Market CapStocks Slide as Oracle Spoils Mood After Fed Cut: Markets Wrap
(Bloomberg) -- The equity rally spurred by a US interest-rate cut and Federal Reserve Chair Jerome Powell’s sanguine economic outlook unraveled after Oracle Corp. reignited concerns about the vast spending tied to artificial intelligence.
Morning Bid: Oracle brings reality check after Fed-inspired rally
Fed cuts rates for third time, but Powell signals higher bar for further cuts A look at the day ahead in European and global markets from Ankur Banerjee Whisper it quietly, but worries around a tech bubble might just resurface after Oracle earnings disappointed investors even as AI spending shows…
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