U.S. stock index futures plunged on Thursday as investors assessed the Federal Reserve’s latest interest rate cuts, helping to fuel late gains on Wall Street.
S&P 500 (ES=F) and Nasdaq 100 (NQ=F) contracts fell 0.8% and 1.2%, respectively. Dow Jones Industrial Average futures (YM=F), which includes fewer technology stocks, fell more modestly, down 0.4%.
Software giant Oracle (ORCL) quarterly revenue fell short of expectations, and its stock price plummeted more than 10%. That’s raising new concerns about demand for its cloud infrastructure products as investors watch for signs of a broader artificial intelligence bubble. Oracle’s growing debt and reliance on OpenAI (OPAI.PVT) to hit its lofty revenue targets have proven worrying for Wall Street.
On Wednesday, the broader market closed higher after a divided Federal Reserve voted to cut interest rates for the third time this year, lowering the federal funds target range to 3.5%–3.75%. Policymakers have signaled more gradual easing in the coming months, but Chairman Jerome Powell signaled no rate hike in January while talking broadly about the strength of the U.S. economy.
Powell said the Fed is “well-positioned to wait and see” how economic conditions evolve, adding that tariffs imposed by President Trump have added to inflationary pressures.
That puts Thursday’s weekly unemployment benefits data in the spotlight, while delayed wholesale inventory and trade sales data are likely to receive more attention than usual.
Meanwhile, earnings reports continue for Broadcom ( AVGO ), Costco ( COST ), and Lululemon ( LULU ), all set to release results that make for an unpredictable season for AI and retail traders.
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